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In light of the ongoing rally, the pair is now poised to test the 114.74 level, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

USD/JPY last week eroded the July peak and 200 week moving average at 113.18/21. We note the TD resistance at 114.31 and are allowing for gains towards the 2017 high at 114.74, where we suspect that it may struggle. Minor support sits at the 113.18 July high and the accelerated uptrend at 113.02 and while above here the market is immediately bid”.

“We look for dips lower to be contained by the 111.83/58 late August high and 55 day moving average. Uptrend support lies at 111.120″.

“Above 114.74 would target 118.66, the December 2016 high”.