USD/JPY on its way to 107.60? – Commerzbank

In opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair seems to be poised to retest the area of 107.60.

Key Quotes

“USD/JPY is slipping back towards its April low at 107.63. Below 107.63 lies major support – namely 106.63/38.2% retracement of the move up from 2012. In this vicinity we also find the 200 month ma at 105.86 and we suspect that the market will attempt to stabilise here”.

“The market recently charted a TD perfected set up and 13 count on the daily chart and may still be correcting higher”.

“Nearby resistance lies 109.67, (March low). We will need a close above 110.67 to alleviate immediate downside pressure and allow for recovery to the resistance line at 111.17”.