Asia-focused trading pair, the USD/JPY, maintained its defensive position on Wednesday. But according to analysts at Credit Suisse bank, a break over 115.69 should be able to verify the finalization of a bullish continuous sequence for a return of the central uptrend back to the 116.35/70 levels.

USD/JPY price chart. Source TradingView

Over 115.69 Should Aid the Sideways Range High

 Major short-term resistance remains obvious at the latest high at 115.69, over which one could see a continuation of bullish patterns completely to change the higher trend again for a re-testing of the high and the long-term downward trend all the way from April 1990, which stood at 116.35/70. 

While there should be an allowance for some fresh rejection, the market keeps looking forward to a final clear break, with a possible resistance next expected at 118.61/66.

Some support is anticipated at 115.23 at first, even with the 13 days’ EMA, and support for price at 115.05/114.92 currently holds to have the immediate risk at a higher level. Anything below that could cause a pullback to the 55 days’ average at 114.46/42.

The Dollar and Yen Before Now

In the past week, the USD/JPY pair dwindled for four days concurrently with the DXY rapid corrections downward while the U.S bond yields also continued in a range-bound. The Dollar Index then fell by 0.23% to reach 95.82, which was its poorest level for almost two weeks before it could bounce back over 96.00. The ten-year bond yield remained at 1.77% after it had been down by 1.05% for last Wednesday’s trading.

The Japanese Yen was giving different results across different platforms. The better risk sentiments weighed on the Yen. The poor economic numbers from the US market last week did nothing much to improve the standing of the Yen upwardly. There was a sharp decline in the private sector payrolls of 301k as opposed to the expected 200k increments, according to the American ADP report that was published last Wednesday.

Credit Suisse

Credit Suisse, on the other hand, is embroiled in a lawsuit and is set to respond to the suit filed against it by the bank’s investors in the U.S for what they called a foreign exchange rigging. A Judge in a New York court had struck out an appeal by the bank seeking for a dismissal of the case tendered before the court.

Many high-end investors of the bank had leveled serious allegations that the Credit Suisse bank’s internal traders disseminated sensitive and high-profile information with traders in some rival banks, thereby causing a rigged currency pricing at the $6.6 trillion per day foreign exchange market just last week.