USD/JPY rallies could falter around 102.66/85 – Commerzbank

Occasional bullish attempts in the pair could run out of steam in the 102.66/85 band. Suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has seen a strong rally off the 78.6% retracement at 100.82 (this held 4 times last week) and we are starting to regard this as an interim low. Intraday rallies look set to terminate circa 102.66/85 and will need to regain 103.55 in order to challenge cloud resistance, which today lies at 104.08/105.45”.

“Rallies will find additional resistance at 104.08 the 20 day ma and 104.92 the 55 day ma. Support lies 100.82, the 78.6% retracement which is considered to be the last defence for the 99.00 recent low”.