USD/JPY to drop substantially towards the 107.28 mark – Commerzbank

USD/JPY has failed at the 110.59/85 resistance. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to plummet towards the 107.28 mark.

Japanese yen flexes its muscles

“USD/JPY has finally failed resistance at 110.59/85. We look for a retest of 109.07 and 108.73 recent lows.”

“A drop through 108.56 (end of May low) would engage the 108.08 200-day ma and the 107.48 April low.”

“The 55-week ma lies at 107.28 and we would allow for some consolidation there.”