USD/JPY downside pressure mitigated above 112.98 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s downside pressure should alleviate above 112.98.

Key Quotes

“USD/JPY is attempting to recover from cloud support, which lies at 111.47. The market is on the defensive and rallies will need to regain initial resistance at the 55 day ma at 112.98 to alleviate downside pressure. This guards the 114.74 recent high. Above 114.74 would target 118.66, the December 2016 high”.

“Failure at the cloud support (111.47) would target the 109.77/78 200 day ma and August low”.