USD/JPY: Bears Testing Bulls Commitments on 109 Handle
USD/JPY
is currently on the offer in a better start in Tokyo than previous
sessions following gains on Wall Street in a better risk profile given
the recovery in commodity sectors.
USD/JPY was performing on the
109 handle overnight, but the bears are back in form on Tokyo and
pressuring the major for a break below the handle. There was a lack of
impetus on the calendar overnight and so to will there be today until we
get to super Thursday and subsequent action that should impact the
major fundamentally as markets access the BoE in respect of the
impending referendum on the EU on June 23rd. For today, we await China
coming on and how the commodity sector can play out, perhaps following
the U.S. sessions lead.
USD/JPY levels
Analysts
at Commerzbank noted that the 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." Then for the upside, as we take on the 109 handle, on a
continuation of the trend, the next major resistance is located at the
descending resistance line and in the vicinity of the 112.00 level. "To
see any real upside scope emerge we need recovery through this,"
according to the analysts at Commerzbank.
