USD/JPY rebound expected to terminate near 101.10 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the current bounce is seen as corrective and it is expected to terminate around 101.10.

Key Quotes

“USD/JPY saw a fairly emphatic rejection of the four month downtrend at 102.38 last week, which has left the market on the defensive. But it has also so far held the 4 month support line at 100.01 and appears in no hurry to break down”.

“The rebound from here is viewed as corrective only and is indicated to terminate circa 101.10. Failure at the support line will target the 99.55 August low and the 99.00 June low”.

“Overhead resistance is reinforced by the cloud at 102.22 and the 103.55 16th June low”.