USD/JPY could test 106.70/87 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness of spot to visit the 106.70/87 area.

Key Quotes

“USD/JPY has charted another pretty strong up session and has reached the 106.38 55 day ma. The move remains directional and further gains look likely”.

“We look for a test of the 106.70/87 24th January high and 61.8% retracement. This represents the break up point to the 107.90 2016 resistance line and the 108.78/78.6% retracement. This is the last defence for 111.45 May high. The market stays immediately bid above the 103.55 support (16th June low)”.

“Below 102.35 would alleviate immediate upside pressure. Initial support is 103.55/25, the mid Jun low and the 20 dy ma”.