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USD/JPY is starting to slide and attention is on the six-month uptrend at 105.12, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“USD/JPY after the best part of a month where the market has remained capped by the 55-day ma at 106.34 it has finally reacted lower and attention is back on the six-month uptrend at 105.12. This guards the late July low at 104.20 and the 103.43/78.6% Fibonacci retracement which is the last defence for the 101.18 March low.” 

“Overhead lies the 55-day ma at 106.34, but the market will need to regain 107.05, the recent high, to trigger a move to the 200-day ma at 107.81. We are slightly negative.”