USD/JPY downside appears limited – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, pullbacks in USD/JPY should stay shallow.

Key Quotes

“For this to make any impact on the chart, the market will need to overcome both the 200 day ma at 110.60 and near term downtrend at 110.24. Nearby support is the 109.11 recent low, below here, there is scope for slippage to the 108.13 April low, however we have the 55 week ma at 108.74 and the slow stochastics have turned higher, which suggests that the downside is limited”.

“Rallies will need to regain 112.13 to retarget the 114.38 recent high”.