USD/JPY focused on 114.38/58 – Commerzbank
In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair needs to surpass the 114.38/58 band to confirm the break higher.
“USD/JPY continues to probe the top of the range at 114.38/58 (May and July highs were made and the 2015-2017 downtrend) we will need a close above here to confirm the break higher. However upside risks are growing longer term and while dips lower are contained by 112.03/111.74 (the 200 day ma and the 55 week ma) an upside bias will persist. A close above 114.58 will introduce scope to the 118.60/66 January high”.
“The 55 day ma guards the 109.55 mid-September low and in turn this support guards the 108.81/13 April and June lows as well as the September low at 107.32”.