In light of the recent price action, spot could now challenge the mid-110.00s, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“USD/JPY has eroded the 200 day ma at 110.18. In doing so the market has resumed its bull trend and is poised to challenge the 110.48 2 nd February high and 55 week moving average. Above here we have a minor resistance line at 110.67 and the 112.12 2015-2018 downtrend”.
“Initial support lies at 109.48 – the accelerated uptrend – ahead of the recent low at 108.65 (4 th May low) and the 107.90 mid-February high”.
“Below 107.90 will alleviate immediate upside pressure for a slide to the 55 day ma at 107.37. This guards the 106.21 base of the cloud and then the March low at 104.56″.
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