USD/JPY could deflate to 111.77 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair stays poised for a correction lower that could extend towards the 111.80/75 band.

Key Quotes

“USD/JPY has recently failed at the 114.38 recent high, the RSI and slow stochastics indicators are more negative and we would allow for a small retracement towards the 200 day ma circa 111.77, there is scope for 110.00. Above 114.50 will see an extension to the 115.51/62, this years highs. Intraday rallies are indicated to terminate circa 113.50/70”.

“Key nearby support is the 250 day ma at 109.76 and 55 week ma at 109.33, below here, there is scope for slippage to the 108.13 April low”.