USD/JPY set to suffer some near-term weakness after failing at 110.70 – Commerzbank

USD/JPY remains below 110.50 as the pair failed to close above the 110.70 pivot. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects USD/JPY to dip in the short-term.

Drop through 108.56 to engage the 107.48 April low

“USD/JPY has traded through but failed to close over the 110.70 level. Currently, we are fairly neutral but would allow for some near-term weakness.” 

“Only a drop through 108.56 would engage the 107.48 April low.”

“The 55-week ma lies at 106.86 and we would allow for some consolidation there.”