USD/JPY targets 107.49 longer term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could attempt a visit of the mid-107.00 in the longer run.

Key Quotes

“USD/JPY has rallied to and so far halted at the May low at 105.55, we note a TD perfected set up on the 240 minute chart and the divergence of the daily RSI 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 107.13 at this stage. The base would offer an additional upside measured target to approximately 109.50”.

“We have a 20 day ma at 104.05 and should find initial support at 103.16 ahead of the 101.92 base of the cloud”.