USD/JPY: Remains on the defensive – Commerzbank

Karen Jones, analyst at Commerzbank, points out that the USD/JPY pair has spent the past week consolidating its recent losses and remains on the defensive following its rejection last week from the 20 day ma at 109.20.

Key Quotes

“The market stays immediately offered below the near term downtrend at 109.38. Our initial target is the 107.27 61.8% Fibonacci retracement then the 78.6% retracement at 105.87. Minor resistance comes in at the 110.84 April 10 low and the 111.28 200 day moving average. These guard the 2015-2019 112.27 downtrend.”

“We look for the market to remain capped by its downtrend, only above here would target the 114.55 October 2018 high.”