According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot remains bid very near term and could test 112.15.
Key Quotes
“USD/JPY remains bid very near term, the market has recently 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 is trying to resume its longer term up move. 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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