USD/JPY: Bears Testing Bulls Commitments on 109 Handle
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.
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.