USD/JPY to resume bull trend towards 2018 highs at 118.61/66 on a breach of 116.60 – Credit Suisse

USD/JPY has pushed above resistance at 115.88. Analysts at Credit Suisse look for an eventual break above 116.60 with resistance then seen at 118.61/66.

USD/JPY can complete an important bullish continuation pattern above 116.35/60

“We look for strength back to the YTD highs and long-term downtrend from April 1990 at 116.35/60.” 

“Whilst a fresh setback from 116.60 should be allowed for with a long-term base still in place from last year we continue to look for a clear break higher in due course to mark the completion of a bullish ‘ascending triangle’ continuation pattern for a resumption of the core bull trend. We would then see resistance next at 118.02 ahead of the 2018 highs at 118.61/66.”

“Support is seen at 115.79 initially, with 115.45/36 now ideally holding to keep the immediate risk higher. Below can see a pullback to the 55-day average at 115.07, but with fresh buyers expected to show here.”