USD/JPY: tested the 105 vicinity on Brexit remain polls leading

USD/JPY is showing its correlation with the sentiment for the Bremain camp leading in the polls on the eve of the EU referendum in Britain.

USD/JPY spiked towards the 105.00 on the recent polls that show the remain campaign leading as follows:

Brexit trade: a look beyond sterling and get back to basics

But the latest polls were in from YouGov (online): Remain 51% and Leave 49% and ComRes (phone): Remain 48% and Leave 42% - USD/JPY made a high of 104.97, but fell back to 104.66.

USD/JPY levels

USD/JPY is in consolidation having falling below the 105 psychological handle last week. Levels could be strentched with the hightened volatility that we should be on the verge of now with due to Brexit, but analysts at Commerzbank suggested that caution is warranted as they note the 13 count on the daily chart, "it has eroded its accelerated downtrend and the slow stochastics are about to roll over and turn higher. Our suspicion is that very near term that we will see a small bounce. Initial resistance lies 105.55 the previous low and then 106.00/106.10, in order to alleviate immediate downside pressure a close above 107.90 is needed. We remain unable to rule out scope to the 102.09 55 month ma and there is potential for 100.70, the 50% retracement of the move 2011 to 2015."