USD/JPY focus is back on 105.54 – Commerzbank

Technicals noted the pair could slip back to recent lows in the mid-105.00s, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY remains thwarted by its 20 day ma at 108.17, and sold off sharply intraday Elliott wave counts are both negative and it is possible that we will see the market retest the 105.54 recent low. Dips lower should find some support at 106.72/44”.

“Last week the market eroded but did not close below the 105.73 200 month ma. Above 108.17 targets the 110.48 February high”.

“Failure at 105.55 would trigger losses to the 100.70/99.00, the 2016 low”.