The pair’s outlook remains tilted to the bullish side, allowing a potential test of the 111.90 area, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has remained above the 55 day ma and is immediately bid above 109.81, a tiny uptrend. We are overall bullish and attention is on the 111.90 last reaction high – this will need to be eroded to confirm that the market has based (favoured)”.

“We look for dips to hold over 107.65 and while above here stay bullish. Above 110.90 we look for gains to the 50% retracement of the move down from December 2015 and the mid February high at 114.57/87”.