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Occasional dips in the pair are expected to find contention in the 111.40/38 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

USD/JPY has held the initial test of the 78.6% retracement at 112.45. We look for dips back from here to be contained by the 111.49/38 20 and 55 day moving averages and be contained by up trend support at 110.86. Above 112.45 we look for gains to the July peak and 200 week moving average at 113.18/27. We would allow for this to hold the initial test and provoke some profit taking, but longer term we favour a break above here to the 2017 high at 114.74″.

“If the 109.77 level were to give way (recent 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″.