USD/JPY stays on the defensive near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could extend gains in case 112.10 is cleared.

Key Quotes

“USD/JPY is showing signs of attempting to stabilise above the 109.95 200 day ma and intraday should rallies managed to overcome 112.10 we would allow for a recovery. Meanwhile while capped by 112.10 (imoku 1) we will assume it remains capable of testing the 109.95 2000 day ma. this guards the 108.13 April low. It remains in the defensive very near term, however the past few days have registered inside days and this does reflect a loss of downside momentum. We will tighten stops as a result. Rallies will need to regain 112.10 to retarget the 114.38 recent high”.

“Above 112.45 is needed to alleviate immediate downside pressure for an attempt to recover towards the 114.38 high from last week”.