USD/JPY could slip towards 101.81 – Commerzbank

In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could grind lower to the 101.80 area.

Key Quotes

“USD/JPY has continued to sell off from the May low at 105.55, it is easing back from here and has already reached the 55 day ma at 102.60, this may prompt a very small rebound. We look for the market sell off to the base of the cloud at 101.81.Could the sell off reach lower towards the 100.40 5 month support line? We cannot rule this out at this point. Intraday rallies are indicated to terminate circa 103.75”.

“Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 106.97 at this stage. The base would offer an additional upside measured target to approximately 109.50”.