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USD/JPY eroded the August 2019 low at 104.46 last week but as the pair was unable to close below the mentioned mark, Commerzbank’s Karen Jones is expecting a recovery with downtrend at 106.83 showing initial resistance. 

Key quotes

“USD/JPY last week eroded 104.46, the August 2019 low, but we did not close below here and charted a large key day reversal, suggesting scope for a near-term recovery.”

“Resistance is offered by the short-term downtrend at 106.83 ahead of the 200-day moving average at 108.24.” 

“Last week’s low at 104.20 guards the 103.43/78.6% retracement, which is the last defence for the 101.18 March low.”