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USD/JPY was last seen hovering near the lower end of its intraday trading range, around mid-109.00s. In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the USD/JPY pair is seen testing Fibonacci support at 109.00.

Pressure on the USD/JPY pair

“USD/JPY sold off last week to the 23.6% retracement at 109.00. This has held the initial test but we are not convinced that the correction lower is over and would allow for a slide to the March 10 and 23 lows at 108.41/34 and there is scope for the 38.2% retracement at 107.77.”

“Above 110.97 lies the 111.13/38 October 2018 low and mid-February 2019 high.”