USD/JPY: Scope for a slump to the 111.66 July high – Commerzbank

USD/JPY fell below 113.00 and touched its lowest level in nearly a month. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to continue its fall towards the 111.66 July high.

USD/JPY has topped near-term

“USD/JPY has broken below 113.26, and in going so has topped near-term. It is likely to see a deeper retracement to 112.56 then 111.90, the 38.2% and 50% retracements. The 111.66 July high is found in this vicinity and we will ideally see the market recover from here.” 

“Rallies are likely to find the 20-day ma at 113.81 ahead of 114.55/69, the November 2017 high and recent high.” 

“Loss of 110.80 is needed to destabilise the chart and allow for a deeper sell-off to key near term supports at 109.07/10 and 108.73 (July and August low).”