USD/JPY: Attention is on the 104.00 September low – Commerzbank

The US Dollar is consolidating, as USD/JPY bounces-off strong support near the 104.65 region to challenge the 105 level on Monday, helped by the recovery in the US dollar across the board amid a flight to safety, but remains vulnerable. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, is focused on the 104.00 September low. 

See: USD/JPY now focused on the 104.00 level – UOB

Key quotes

“USD/JPY last week sold off from the three-month downtrend at 105.76 and the focus this week is on the 104.00 September low. This together with the 200-month ma at 103.93 guards the 103.43/78.6% Fibonacci retracement which is the last defence for the 101.18 March low.” 

“Rallies will find initial resistance lines at 105.76 ahead of the seven-month resistance line at 106.31. Only above here will trigger a move to the 200-day ma at 107.23.”