USD/JPY Underpinned by 105.86/38 – Commerzbank
In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains supported by the 105.86/38 area.
“USD/JPY last week sold off towards and reversed from the 200 month and 200 week moving averages at 105.86/38. This area is key support and we continue to look for it to underpin the market”.
“The new low of 105.55 was accompanied by a large divergence of the daily and weekly RSI and this reflects a loss of downside momentum”.
“Initial resistance is offered by the 20 day moving average at 108.83 and stronger resistance at 110.95/111.90. To see any real upside scope emerge we need recovery through this secondary level”.