USD/JPY longer term upside bias negated below 111.59 – Commerzbank

In opinion of Axel Rudolph, Senior Technical Analysis at Commerzbank, a drop below 111.59 should negate the long-term bullish bias on USD/JPY.

Key Quotes

“It is still heading back down towards the 111.78/59 support zone, made up of the two month support line and February lows”.

“Only below 111.59 would negate our longer term upside bias and introduce scope to Fibonacci support at 109.92 and, if seen, the 200 day ma at 108.09. We look for this to hold (this is also the 50% retracement of the move up from November)”.

“Above 115.62, we look for a challenge to the key short term resistance offered by the 16 month resistance line at 117.68 – and this remains our favoured view”.