USD/JPY targets 107.49 longer term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could test the mid-107.00s in the longer run.

Key Quotes

“USD/JPY last week sold off to and is seeing a strong rebound from the 55 day ma at 102.74, this has been enough to cast attention back to the 105.55 May low. Longer term we suspect that the market is basing and we target the 107.49 July high and the 200 day ma at 106.80 at this stage. The base would offer an additional upside measured target to approximately 109.50”.

“Below 102.55 (last weeks low) we would look for the market sell off to the base of the cloud at 101.81. Could the sell off reach lower towards the 100.41 5 month support line? We cannot rule this out at this point (although this is not our favoured scenario)”.