In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair should need to clear the 110.80/111.00 band to allow for further upside.
Key Quotes
“USD/JPY has tested and is recovering from support between the 55 week moving average at 110.22 and the 200 day moving average at 109.85, which is holding on a closing basis. We have no strong view at this juncture. It is possible that it is only a correction lower, but we suspect that will struggle 110.80/111.00 and this will need to be overcome in order to reassert upside pressure”.
“While the 109.84 200 day ma underpins, we look for a retest of the current August high at 112.15 above which sit the July peak and 200 week moving average at 113.18/35″.
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