USD/JPY attention shifted to 111.98 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair remains under pressure and a test of 111.98 cannot be ruled out.

Key Quotes

“USD/JPY is under pressure and capable of retesteting the 38.2% retracement at 111.98 area and the 112.02 April high. This is stronger support and we note that the recent move lower continues to indicate that this is the end of the corrective move. As a consequence is side lined very near term and we suspect will again attempt to recover. Initial resistance lies at 115.34 (imoku 2) and this will need to be regained in order to alleviate downside pressure and reintroduce scope to key short term resistance offered by the 16 month resistance line at 118.21”.

“Only below 111.98 would trigger losses to the base of the cloud, which lies at 109.92 and, if seen, we look for this to hold (this is also the 50% retracement of the move up from November)”.