Axel Rudolph, analyst at Commerzbank, explains that the USD/JPY pair continues to have the July and August highs as well as the 200 day moving average at 108.99/109.33 in its sights but short-term is being rejected by the 50% retracement at 108.43.
“Overall upside pressure will remain in play while the cross stays above the September 16 low at 107.44, however. Further minor support below the 55 day moving average at 107.25 sits at the 105.74 current September low.”
“Good support below the 105.74 low can be spotted between the midand late August lows and the 200 month moving average at 115.05/104.38. Further down sits the January low at 104.10.”
“Failure at 104.10 would target the 2016 low at 99.00.”