USD/JPY: Tough resistance – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that USD/JPY is starting to balk at tough resistance which extends from current levels up to the 2015-2019 downtrend at 110.79 (the 55 and 200 week moving averages are found ahead of here at 109.57/109.98) and is formidable resistance which should hold the topside.

Key Quotes

“Near term however the market remains capable of upside probes while above the uptrend at 108.50 and only on a close below here does our attention divert to underlying support.”

“Failure at the recent low of 107.89 will further alleviate upside pressure and trigger losses to the 106.48 October low. Failure at 106.48 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”