USD/JPY to retest and eventually break 145.00/12

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We continue to expect USD/JPY to retest the medium-term upside target of 145.00/12 – the high from June and the “neckline” of the end-2022 top. While this target should again be respected, our core view remains bullish and we look for an eventual breakout here with the next resistance at 146.54/66 and ultimately the “measure potential target” at 148.57.

A break below recent lows and the 55-day moving average around 141.43 support would be needed to form a short-term top to ease the current uptrend and the potential for further weakness on a broader basis, with the next level of support from March Uptrend line, currently at 139.00.