USD/JPY a test of the mid-105.00s is likely – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside could extend to 105.55.

Key Quotes

“USD/JPY continues to consolidate - it has closed above the September high at 104.32, but is currently thwarted by the top of a channel at 104.90. We look for further gains to the May low at 105.55, we note the weekly imoku 2 lies 105.23 (cloud resistance) and we would allow for this to hold the initial test”.

“Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 107.33 at this stage”.

“Dips should find initial support at 103.16 ahead of the 102.15 base of the cloud”.