USD/JPY targets the 55-week ma at 106.23 – Commerzbank

USD/JPY has held the initial test of the 55-week moving average at 106.23 and the pair may see a small dip lower. All in all, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the 200-day ma and the 55-week ma around the 106.20 region.

Key quotes

“USD/JPY has held the initial test of the 55-week ma at 106.23. This is also the top of the short-term uptrend at 106.19 and we would allow for a small dip lower.” 

“Moves lower should remain well supported by the January high and short-term uptrend at 104.40/58. The uptrend guards the 103.33, the 21st January low.” 

“In order to adopt a more outright positive stance longer-term, the market will need to regain the 55-week ma at 106.23 on a closing basis. Note above the 55-week ma would target the 200-week ma at 109.08.”