USD/JPY set to slide below 109 for a test of the 108.73 recent low – Commerzbank

USD/JPY has bounced from the 109.07 July low. However, the pair is set to remain under pressure below 110 and see a dip to the 108.73 recent low, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

See: USD/JPY to march forward as US yields race higher – Danske Bank

USD/JPY to retest 109.07 and 108.73 recent lows

“USD/JPY is seeing a small rebound near-term, but as this has made no impact on resistance so far, we maintain a negative bias.”

“We look for a retest of the 109.07 and 108.73 recent lows.”

“A drop through 108.56 (end of May low) would engage the 107.48 April low.”

“The 55- week ma lies at 107.00 and we would allow for some consolidation there.”