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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance remains bid for the time being, while the upside could extend to the 113.30 area.

Key Quotes

USD/JPY remains bid short term following the break last week above the 2015-2018 downtrend, and we look for further gains to initial resistance at the 200 week moving average at 113.29 and then 114.73, the November 2017 high. (Our much longer term target is the 125.86 2015 high). We notice the 13 count on the daily chart and would tighten up stops on long positions. Dips lower are indicated to hold at 111.95/60 and the market stays bid above the 110.29 55 day ma. We note the 13 count on the intraday charts and would allow for a small pullback prior to further gains”.

“Below the 55 day ma at 110.29 will target the 8 th June low at 109.20. Loss of 109.20 (8 th June low) would imply a slide back to the 108.21 29th May low and the mid-February high at 107.91″.