USD/JPY downside seen struggling at 108.55 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects occasional dips in USD/JPY to hold around the mid-108.00s.

Key Quotes

“The market is oscillating around its 200 week ma at 110.49. The 110.11 recent low is not yet safe as we are unable to rule out slippage to the 109.10 50% retracement and the 108.55 200 day ma. However we do suspect that there is simply not a lot of room on the downside and look for the 200 day ma to hold”.

“Rallies will find initial resistance at 112.92 (55 day ma) but only above 115.62, would we look for a challenge to the key short term resistance offered by the 16 month resistance line at 117.38”.