USD/JPY could see another test of 107.49 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair could attempt another test of recent high in the mid-107.00s.

Key Quotes

“USD/JPY has recently failed at the overhead cloud, sold off to its 20 day ma and ideally we should see an attempt to stabilise here ahead of another leg higher”.

“If we are correct we should see a rechallenge of the 107.49 recent high. We should ideally see the market hold over the 103.55 mid June low”

“Ideally we would like to see a close above 107.49 (last weeks high) as an absolute minimum to confirm upside intent”.

“Overhead lies the 108.78/78.6% retracement, which is the last defence for 111.45 May high. The market stays immediately bid above the 103.55 support (16th June low)”.