USD/JPY capped around 104.08/105.45 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank,

Key Quotes

“USD/JPY remains capped by cloud resistance, which today lies at 104.08/105.45, and sold off sharply. We have no choice but to adopt a more negative stance following this rejection”.

“Rallies will find resistance at 104.20 the 20 day ma and 105.68 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. We have a near term support line at 101.67”.

“Only a close above 105.68 would alleviate immediate downside pressure and only above 107.49 (recent high) would confirm upside intent”.