USD/JPY further gains likely above 107.32 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the pair could look for extra gains on a surpass of 107.32.

Key Quotes

“USD/JPY continues to push higher and has eroded key resistance at 106.70/87, the 24th January high and 61.8% retracement and the 107.32 2016 resistance line. It is approaching the 107.85/108.65 cloud and we remain nervous that this will hold the initial test”.

“We remain unable to rule out dips to 105.30/104.30 ahead of another leg higher and ideally we would like to see a close above 107.32 to confirm upside intent”.

“The 107.32 resistance line guards the 108.78/78.6% retracement, which is the last defence for 111.45 May high. The market stays immediately bid above the 103.55 support (16th June low).