USD/JPY door open for a small bounce? – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could see a minor rebound in the near term.

Key Quotes

“USD/JPY is consolidating following its break below major support last week - namely the 105.55 recent low and 105.40 2014 peak. This break lower implies scope to the 102.09 55 month ma and has introduced potential for 100.70, the 50% retracement of the move 2011 to 2015. Caution is warranted we note the 13 count on the daily chart. Our suspicion is that very near term that we will see a small bounce”.

“Initial resistance lies 105.55 the previous low and then 106.00/106.10, in order to alleviate immediate downside pressure a close above 107.90 is needed”.