USD/JPY: Well placed to try the topside – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that USD/JPY is approaching the 200 day ma at 109.07 and they would allow for this to hold the initial test.

Key Quotes

“Beyond some near term consolidation however, the market is well placed to try the topside once more. Above the market lies the 55 and 200 week moving averages at 109.85/110.18 and the 2015-2019 downtrend at 111.05. Dips will find initial support at the 20 day ma at 107.78 ahead of the 106.48 October low.”

“Failure at 106.47 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”