USD/JPY points to further consolidation near term – Commerzbank

In light of the recent price action, USD/JPY is expected to extend the sideline theme for the time being, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY last week reached and is now consolidating at the 200 day ma at 112.09, given that we have a TD perfected set up on the daily chart we would allow for further consolidation this week, but this has been fairly shallow so far. Beyond this near term shake out we look for gains to the top of the range at 114.38/49. Intraday dips should be contained circa 110.35 and we would attempt to buy the dips”.

“Support at 109.50 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”