USD/JPY further weakness expected – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could extend its downside momentum.

Key Quotes

“USD/JPY is seeing a minor bounce from the 106.35 recent low, it is consolidating recent losses. This is considered to be the last defence for the 105.55 recent low and 105.40 2014 peak”.

“While we still consider these to be key support for the market, it is clearly going to take some time to recover, for now we suspect further weakness to test these supports and intraday look for rallies to remain capped 107.95/108.35”.

“The market will need to regain the 111.90 last reaction high to negate downside pressure and confirm that the market has based”.