Karen Jones, analyst at Commerzbank, points out that USD/JPY yesterday charted a key day reversal from 109.73.
“Given the very dense overhead resistance, namely the 200 week moving average at 109.83 and the 2015-2019 downtrend at 110.59, we will assume that the market has topped for now. While this resistance area caps, near term attention will remain on the recent low at 107.89.”
“Failure here will further alleviate upside pressure and trigger losses to the 106.48 October low. Failure at 106.48 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”
“On a close above the 2015-2019 downtrend.”