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In light of the recent performance, the pair might have carved and interim top above the 113.00 milestone, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

USD/JPY has fallen to and is so far bouncing from the 55 day moving average at 110.56. This is reinforced by the 55 week ma at 110.25 and the 200 day ma at 110.09. So we are not particularly surprised to see this hold the initial test”.

“Last week the market reversed just ahead of the 200 week moving average at 113.29 and we suspect has temporarily topped. Failure at 110.09 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 midFebruary high at 107.91. Intraday rebounds are indicated to fail circa 111.50/75″.