USD/JPY: Near term support line eroded – Commerzbank

According to Karen Jones, analyst at Commerzbank, USD/JPY again sold off following its recent key day reversal and has now eroded its near term support line.

Key Quotes

“Attention has reverted to the November low at 107.89. Given the very dense overhead resistance, namely the 200 week moving average at 109.83 and the 2015-2019 downtrend at 110.59, we will assume that the market has topped for now.”

“Failure at 107.89 will trigger losses to the 106.48 October low. Failure at 106.48 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”