In a risk-off transaction, the Japanese yen surges. At 110.36, the USD/JPY has broken the uptrend from 2021. As a result, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the pair is headed towards the 108.56 May low.
“USD/JPY has just slipped ahead of our medium-term target of 112.23/50, severing the 2021 uptrend line at 110.36.”
“The pair has fallen to the 23.6 percent retracement level of 109.52, but the near-term risks are now on the downside.”
“Short-term, we’re likely to see another sell-off, with the 108.56 late-May low and the 107.48 April low as obvious targets. The Fibonacci levels of 109.52 and 108.20 provide some support along the way.”/n
