USD/JPY could see a re-test of 108.50/107.10 – Commerzbank

Axel Rudolph, Senior Technical Analyst at Danske Bank, suggested the pair could visit the 108.50/107.10 area before another leg higher.

Key Quotes

“USD/JPY has maintained upside pressure. We have seen an erosion the 110.00 55 week ma and the market has ploughed higher close to the May peak at 111.45. We may well see this hold the initial test. The intraday Elliott wave count is implying a retracement to 108.50/107.10 ahead of the next upside leg and we would prefer to buy the dip”.

“Dips lower should now find that the 107.49 July high offers nearby support. Below here lies the 106.43 200 day ma and the 105.55 May low”.