USD/JPY now targets 106.60 – Commerzbank

In light of yesterday’s strong rebound from sub-102.00 levels, the pair could now attempt to visit the 106.60 area, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has seen a huge recovery intraday from the low of 101.19 yesterday. This has propelled the market back to the 105.55 May low, which has been eroded. Longer term we suspect that the market is basing and we target the 200 day ma at 106.60 and the 107.49 July high at this stage. The base offers an additional upside measured target to approximately 109.50”.

“The bottom of the range is a band bordered by the 100.47 5 month support line and the 99.00 June low. Initial support is the 103.01 55 day ma”.