USD/JPY rallies could struggle around 108.25/90 – Commerzbank

Bullish attempts in USD/JPY could find strong resistance in the 108.25/90 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has seen a minor erosion of 106.80 – the 78.6% retracement. This is considered to be the last defence for the 105.55 recent low and 105.40 2014 peak”.

“While we still consider these to be key support for the market, it is clearly going to take some time to recover, for now we suspect further weakness to test these supports and intraday look for rallies to remain capped 108.25/90”.

“The market will need to regain the 111.90 last reaction high to negate downside pressure and confirm that the market has based”.