USD/JPY looks to have set an exhaustive peak at the 125.29/86 highs of 2015. Analysts at Credit Suisse stay biased toward further sideways consolidation.

An exhaustive peak looks to be in place

“USD/JPY has reversed lower and entered a short-term consolidation phase since extending to just shy of the key 2015 highs at 125.29/86, with weekly RSI momentum still above 80. We have likely seen the peak in this phase of USD/JPY strength and look for further sideways consolidation.”

“Key support during this phase remains at the 38.2% retracement of the rally from late February and 13-day exponential average at 121.33/121.20, which we look to try and hold for now. A closing break would complete a clear top though to trigger a deeper corrective move lower.” 

“Above 123.21 is needed to clear the way for a move back to 124.31, but with a break above here needed to clear the way for strength back to the 125.11/86 highs.”