USD/JPY could recede towards 104.50/103.30 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could deflate to the 104.50/103.30 area.

Key Quotes

“USD/JPY last week faltered on initial attempt of the cloud, today located at 106.62/107.72 and we remain nervous that this will prompt a deeper retracement”.

“We remain unable to rule out dips into the 104.50/103.30 band ahead of another leg higher and ideally we would like to see a close above 107.49 (last weeks high) as an absolute minimum to confirm upside intent”.

“Overhead lies the 108.78/78.6% retracement, which is the last defence for 111.45 May high. The market stays immediately bid above the 103.55 support (16th June low)”.