Senior Analyst at Commerzbank Axel Rudolph sees scope for the pair to advance to the 112.15 level.
Key Quotes
“Last week USD/JPY tested and recovered from support offered by the 55 week moving average at 110.27 and the 200 day moving average at 109.83. We believe that the cross has resumed its longer term up move, following the break above its two month resistance line at 110.61. We thus anticipate a retest of the current August high at 112.15 above which sit the July peak and 200 week moving average at 113.18/34″.
“If the 109.78 level were to give way (last week’s low), the June 8 low at 109.20 would be in focus. Failure there would imply a slide back to the 108.12 May 29 low and the mid-February high at 107.91″.
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