Karen Jones, analyst at Commerzbank, explains that the USD/JPY pair remains under pressure following its recent key week reversal from the 112.46 2015-2019 downtrend but is seen to continue to near-term recover.
“It has bounced from 109.02 near term and currently the rebound looks set to halt circa 110.71. Failure at 109.02 would push the late January low at 108.49 and the 50% retracement at 108.25 to the fore.”
“Further down sits the 107.27 61.8% Fibonacci retracement. Minor resistance comes in at the 110.84 April 10 low.”
“Above the 112.46 downtrend lies the 114.55 October 2018 high.”