USD/JPY: Scope for the rebound to extend to 142.20, potentially 143.12/17 – Credit Suisse

USD/JPY continues its rebound. Economists at Credit Suisse expect the pair to extend its rebound to the 13-day exponential average at 142.18/20.

Support seen at 139.63, then 138.63

“We see scope for a deeper recovery, whilst still maintaining our broader negative outlook. Resistance is seen at the falling 13-day exponential average at 142.18/20, which we look to try and cap on a closing basis. Above can see a deeper recovery back to the 38.2% retracement of the October/November fall at 143.12/17, but with fresh sellers expected here.”

“Below 139.63 is needed to ease the immediate upside bias. Big picture, we look for an eventual sustained move below 138.63 for a fall back to 137.69 and eventually what we expect to be much better support at the 200-day average at 133.48.”