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The USD/JPY pair failed on its initial test of its 10-month downtrend at 104.34 and was last seen trading at 103.61, down -0.12% on the day. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the mentioned downtrend is a key hurdle towards the 200-day mobing average at 105.88.

Key quotes

“USD/JPY has failed on its initial test of the 10-month downtrend at 104.34. This continues to act as the barrier to the 200-day ma at 105.88.” 

“Given last weeks key week reversal we feel that upside risk remains and we would allow for the possibility of a trend break.”

“Dips lower are indicated to hold around the 103.50 level.”