USD/JPY further consolidation expected – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair attempting some consolidation in the near term.

Key Quotes

“USD/JPY’s recent high at 112.85 was accompanied by a divergence of the daily RSI. This tends to reflect a loss of upside momentum and we would allow for further consolidation. The 200 day ma is now supporting at 111.88 and while above the 55 day ma at 110.65 it will remain immediately bid. Above 112.85 will trigger further gains to the top of the range at 114.38/49”.

“The 55 day ma guards the 109.50 level and support at 109.50 guards the 108.13 April low and the recent low at 107.32”.