USD/JPY to plunge towards the 108.56 May low and the 107.48 April low – Commerzbank

The Japanese yen soars in risk-off trade. USD/JPY has snapped the 2021 uptrend at 110.36. Consequently, the pair is set to slide towards the 108.56 May low, in the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Uptrend line at 110.36 severed

“USD/JPY has recently faltered ahead of our medium-term target 112.23/50 and it has now severed the 2021 uptrend line at 110.36.” 

“The pair has so far slid to the 23.6% retracement at 109.52, but near-term risks are now on the downside.”

“We are likely to see a further sell-off short-term and the obvious level to aim for is the 108.56 late May low and the 107.48 April low. We have the 109.52 and 108.20 Fibonacci levels offering some support en route.”