In the view of Karen Jones, Analyst at Commerzbank, despite the latest leg down, the USD/JPY pair is set to test the recent high near 111.40 levels.
Key Quotes:
“USD/JPY is approaching the 111.39 recent high and key resistance offered by 111.67 2015-2018 downtrend, where we suspect that it will fail on its initial test. Dips back from here should find some support offered by the 55-day ma at 109.77 and the 8 th June low at 109.20. Slightly longer term a break above the downtrend is favored and would introduce scope to the 200-week moving average and this is located currently at 113.25. (Our much longer-term target is the 125.86 2015 high).
Loss of the 55-day ma and 109.20 (8th June low) would imply a slide back to the 108.21 29th May low and the mid-February high at 107.91.”
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