USD/JPY constructive above 111.66/75 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s constructive outlook should stay unchanged while above the 111.66/75 band.

Key Quotes

“USD/JPY appears to be stalling just ahead the top of the range at 114.38/76 (this is where the May and July highs were made and also the 2015-2017 downtrend) and we suspect that it is likely to hold the initial test. However upside risks are growing and while dips lower are contained by 111.66/75 (the 200 day ma and the 55 week ma) an upside bias will persist. Above 114.75 will introduce scope to the 118.60/66 January high”.

“The 55 day ma guards the 109.55 mid-September low and in turn this support guards the 108.81/13 April and June lows as well as the September low at 107.32”.