USD/JPY: Trend turns lower again, support seen at 106.67/57 – Credit Suisse

USD/JPY remains under pressure after losing the 107.00 level and analysts at Credit Suisse continue to look for the risk to turn back lower with support seen at 106.67/57. 

Key quotes

“With support at 107.00/106.92 removed we continue to look for the trend to turn meaningfully lower again. Support is seen initially at 106.67/57 ahead of 106.38/31 and then the 105.98 May low. Whilst a fresh rebound from this latter level should be allowed for, a break in due course can see the downtrend extend with support next at 105.20 – the 61.8% retracement of the March rally. We would then look for a fresh hold here.”

“Near-term resistance remains at 107.13/17, then 107.45. Above 107.64 is needed to clear the way for a deeper recovery in the broader sideways range with resistance next at 108.21/24, then 108.55/60, with fresh sellers expected here.”