USD/JPY upside pressure reignited above 107.89 – Commerzbank

The should pick up extra upside pressure on a breakout of 107.89, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY is seeing some signs of embryonic recovery but will need to overcome its 20 day ma at 107.89 to reassert upside pressure. Intraday Elliott wave counts on the 60 minute and 240 minute charts remain negative and it is possible that we will see the market retest the 105.54 recent low (however this is not our favoured scenario). Dips lower should find some support at 106.44/38”.

“Recently the market eroded but did not close below the 105.72 200 month ma. Above 107.90 (21st February high) targets the 110.48 February high”.

“Failure at 105.55 would trigger losses to the 100.70/99.00, the 2016 low”.