USD/JPY: Some JPY strength is evident – Commerzbank

USD/JPY has eroded the 106.93 April lows. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, takes a look at the USD/JPY technical picture.

Key quotes

“USD/JPY has eroded April lows at 106.93, it is capped near term by the downtrend at 107.43 and while capped here the market will remain offered.” 

“Focus is on the 50% retracement at 106.71. Failure there is required to alleviate immediate upside pressure for downside pressure to reassert back to 104.46, the August low, and the 101.80 March trough.”