USD/JPY to sustain substantial losses on a close below 55-DMA at 114.50 – Credit Suisse

USD/JPY is coming under increasing pressure following the further rise in geopolitical tensions. A close below the 55-day moving average (DMA) at 114.50 should see weakness extend further towards next support at 114.16, then more importantly at 113.59/48, analysts at Credit Suisse report.

Close below 113.59/48 to see a bearish ‘double top’ established

“A close below 55-DMA and potential uptrend from late September at 114.50 would raise the prospect of further weakness in the broader range with support seen next at 114.16, then 113.59/48 – the January lows and 38.2% retracement of the September/January rally. A close below here would see a bearish ‘double top’ established to mark a more important turn lower, with next support seen at the December lows and 200-DMA at 112.56/17.

“Resistance at the 115.13 capping can keep the immediate risk lower. Above can see strength back to 115.80/88, but with fresh sellers expected here.”