USD/JPY: Remains on the defensive – Commerzbank

Karen Jones, analyst at Commerzbank, points out that the USD/JPY has spent the past week or so consolidating its recent losses but remains on the defensive following its rejection from the 20 day ma at 108.81.

Key Quotes

“The market stays immediately offered below the near term downtrend at 108.94. Our initial target is the 107.27 61.8% Fibonacci retracement, then the 78.6% retracement at 105.87. Above the near term downtrend, minor resistance comes in at the 110.84 April 10 low and the 111.23 200 day moving average. These guard the 2015-2019 112.27 downtrend.”

“We look for the market to remain capped by its 112.20 2015-2019 downtrend, only above here would target the 114.55 October 2018 high.”