In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is expected to meet initial resistance in the 113.30 region.
Key Quotes
“USD/JPY last week severed the 2015-2018 downtrend, and we look for gains this week. Initial resistance is the 200 week moving average at 113.29 and then 114.73 the November 2017 high. (Our much longer term target is the 125.86 2015 high). Dips lower are indicated to hold 111.95/60 and the market stays bid above the 110.18 55 day ma. We note the 13 count on the intraday charts and would allow for a small pullback prior to further gains”.
“Below the 55 day ma at 110.18 will target the 8th June low at 109.20. Loss of 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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