Karen Jones, analyst at Commerzbank, explains that the USD/JPY pair has eroded its 200 day ma and short term downtrend last week and should now challenge dense resistance at the 112.13 March high.
Key Quotes
“Here we also find the 112.04 200 week ma, the 112.43 55 quarter moving average and the 112.80 2015-2019 downtrend. This is extremely tough resistance and we favour failure shortly.”
“It continues to remain underpinned by cloud support at 110.75 and its 3 month uptrend at 110.68. It is bid above here. Failure here will re-target the 109.70 recent low.”
“The 109.70 low guards the 38.2% retracement at 109.06 and there is scope for the 50% retracement at 108.11. The base of the cloud lies at 108.35.”
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