USD/JPY still targets 110.00/111.00 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s recovery points to another test of the 110.00/111.00h band.

Key Quotes

“USD/JPY recently spiked below the April low at 108.13, this move was not sustained and was accompanied by a divergence of the daily RSI. We would allow for a near term rebound into the 110.00-111.00 band ahead of failure. Initial resistance is the 109.77 near term channel. Below 107.32 will target then 106.50, the 61.8% retracement of the move 2016-2017. There is scope for the 2012-2017 uptrend at 105.48, but we look for this to hold the downside”.

“The market will stay directly offered below the 109.77 2 month resistance line”.

“Above 111.05 the August high would target the 112.39, the 200 day ma. There is scope for the top of the range at 114.38/49”.