USD/JPY still targets 112.15 – Commerzbank

The pair is expected to resume the upside and attempt to re-test the 112.15 level, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY sold off towards the end of last week, we have conflicting signals but this dip lower should stabilise around 111.57, the bottom of its daily cloud. The market has recently tested and recovered from support offered by the 55 week moving average at 110.30 and the 200 day moving average at 109.82. We believe that the cross is trying to resume its longer term up move. We thus anticipate a retest of the current August high at 112.15 above which sit the July peak and 200 week moving average at 113.18/32”.

“If the 109.77 level were to give way (recent low), the June 8 low at 109.20 would be in focus. Failure there would imply a slide back to the 108.12 May 29 low and the mid-February high at 107.91”.