USD/JPY constructive above 110.78 – Commerzbank

In view of Axel Rudolph, Senior Analyst at Commerzbank, there is still room for a recovery in the pair as long as it trades above the 110.80 area.

Key Quotes

“USD/JPY’s correction lower paused along the 200 day ma at 111.78, a fall through which would leave the 55 day ma at 110.78 exposed. While above here it will remain well placed for a recovery from a slightly longer term perspective. Above the 113.44 current October high will trigger further gains to the top of the range at 114.38/49. It is where the May and July highs were made”.

“The 55 day ma guards the 109.55 mid-September low and in turn this support guards the 108.81/13 April and June lows as well as the September low at 107.32”.