USD/JPY points to some consolidation near term – Commerzbank

USD/JPY could face some consolidation ahead of a potential climb below the 122.00 handle, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY continues to see a strong rebound but is struggling to clear the top of the cloud at 111.61. We may see some consolidation ahead of a challenge to the 112.22 200 day ma and the top of the range at 114.38/49. We note the 13 count on the 240 minute chart, Intraday dips should be contained circa 110.95/35”.

“The previous downtrend (at 109.13) guards the 108.13 April low and the recent low at 107.32”.

“Below 107.32 will target then 106.50, the 61.8% retracement of the move 2016-2017. There is scope for the 2012-2017 uptrend at 105.48, but we look for this to hold the downside”.