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USD/JPY has seen a strong recovery off support at 108.55. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the pair is set to move higher on a break above the 109.96 April 9 high – which is currently being tested.

Japanese yen sells off

“USD/JPY has seen a sizeable rally from last week’s low at 108.55, our stance is positive, while above here.”

“We are testing the 109.96 April 9 high, and this is the barrier to the 110.97 March high and the 111.13/38 October 2018 low and mid-February 2019 high.”  

“Below 108.55 will alleviate immediate upside pressure for a slide back to the 107.48 April low.”  

“Our medium-term target is 112.23/50, which represents the April 2019 high, the 2020 high and a long term Fibonacci retracement.”