USD/JPY has seen a strong recovery off support at 108.55. Nonetheless, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to stabilize before attacking the 110.97 March high.
“USD/JPY last week tested and held over support at 108.55, we have eroded the 109.96 April 9 high, but we did not CLOSE above here and we suspect some further consolidation ahead of gains to the 110.97 March high and the 111.13/38 October 2018 low and mid-February 2019 high.”
“Our medium-term target is 112.23/50, which represents the April 2019 high, the 2020 high and a long-term Fibonacci retracement.”
