USD/JPY potential test of the mid-108.00s – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the pair could advance further towards the 108.50 area.

Key Quotes

“USD/JPY last week eroded the 200 day ma with ease and is now eroding the 107.49 July high – it is in 5 month highs. A close above here will add further evidence to the idea that the market has based and trigger a rally towards the 108.48 200 week ma and the 110.00 55 week ma. Dips lower should now find that 105.55 offers nearby support ahead of the 103.22 55 day ma. The intraday Elliott wave count is suggesting a retracement into the 105.25/104.25 band ahead of further gains”.

“The bottom of the range is a band bordered by the 100.47 5 month support line and the 99.00 June low”.