USD/JPY scope for a test of 109.90 – Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank, sees the likeliness of USD/JPY to test the 109.90 area.

Key Quotes

“The cross reached the 111.79/36 support zone, made up of the two month support line, the February lows and 38.2% Fibonacci retracement. There it may stabilize today”.

“Only below 111.59 would negate our longer term upside bias and introduce scope to Fibonacci support at 109.92 and, if seen, the 200 day ma at 108.15. We look for this to hold (this is also the 50% retracement of the move up from November)”.

“Above 115.62, we look for a challenge to the key short term resistance offered by the 16 month resistance line at 117.68 – and this remains our favoured view”.