USD/JPY has seen a robust recovery off support at 108.55. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the pair is about to maneuver higher on an opportunity above the 109.96 April 9 high – which is currently being tested.
Japanese yen sells off
“USD/JPY has seen a sizeable rally from last week’s low at 108.55, our stance is positive, while above here.”
“We are testing the 109.96 April 9 high, and this is often the barrier to the 110.97 March high and therefore the 111.13/38 October 2018 low and mid-February 2019 high.”
“Below 108.55 will alleviate immediate upside pressure for a slide back to the 107.48 April low.”
“Our medium-term target is 112.23/50, which represents the April 2019 high, the 2020 high, and an extended-term Fibonacci retracement.