USD/JPY could re-visit 105.55 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the downside pressure on the pair could force it to test the YTD lows in the 105.40 area.

Key Quotes

“USD/JPY remains vulnerable. Focus has shifted to 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 107.50/90”.

“The market will need to regain the 111.90 last reaction high to negate downside pressure and confirm that the market has based. This is a tall order presently”.