USD/JPY could slip to the mid-107.00s – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot could retreat towards the 107.50 area.

Key Quotes

“USD/JPY continues to struggle at 109.40 and we would allow for a minor retracement to circa 107.50”.

“The market has recently based, we believe, at 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”.