USD/JPY initial support emerges at 108.72 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair should meet initial contention in the 108.70 region.

Key Quotes

“USD/JPY is easing back from the 61.8% retracement at 110.02. This resistance is reinforced by the 200 day ma at 110.22. We note the divergence of the daily RSI and we would allow for a dip lower. Dips lower will find initial support at the 108.72 uptrend and 107.90 mid-February high”.

“Above the 200 day ma, key resistance remains the 112.44 2015-2018 downtrend”.

“Below 107.90 will alleviate immediate upside pressure for a slide to the 55 day ma at 107.06. This guards the March low at 104.56”.