USD/JPY strong support emerges at 110.72/12 – Commerzbank

Following the recent drop, the pair should face contention in the 110.72/12 band, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY last week reversed just ahead of the 200 week moving average at 113.29. The sell off will shortly encounter a strong band of support offered by the 110.72/12, which represents the uptrend, 55 day ma, 200 day ma and the 55 week moving average and this should hold the initial test. Failure will target the 8 th June low at 109.20. Loss of 109.20 (8 th June low) would imply a slide back to the 108.21 29th May low and the mid-February high at 107.91. Intraday rebounds are indicated to fail circa 111.50/75”.

“The 200 week ma represents the break up point to 114.73, the November 2017 high. (Our much longer term target is the 125.86 2015 high)”.