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USD/JPY has seen a strong recovery off support at 108.55. Nonetheless, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to stabilize before attacking the 110.97 March high.

Yen is positive above the 108.55 pivot

“USD/JPY last week tested and held over support at 108.55, we have eroded the 109.96 April 9 high, but we did not CLOSE above here and we suspect some further consolidation ahead of gains to the 110.97 March high and the 111.13/38 October 2018 low and mid-February 2019 high.”  

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