USD/JPY attempting to base near term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains sidelined for the time being and could be looking to base in the short-term horizon.

Key Quotes

“USD/JPY is side-lined between last week’s high and the current March low at 107.30 and 105.24 however we suspect that it might be trying to base near term. Firstly we have a 13 count on the daily chart and TD support at 105.00 and secondly the market has lost downside momentum”.

“A rise above the 107.32 level would have the February 21 and 27 highs in its sights. If bettered, the 110.48 February high would be back in the picture as well”.

“Failure at 105.24 would push the 105.00 mark to the fore (TD support and psychological level)”.

“Failure at the 105.00 level on a daily closing basis would trigger losses to the 101.19/99.00 June-to-November 2016 lows”.