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20 May 2014
USD/JPY still on the defensive, eyes on 100.75 – Commerzbank
FXStreet (Edinburgh) - According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the USD/JPY still keeps the bearish tone.
Key Quotes
“Attention has reverted to the 2014 low at 100.75. This is reinforced by the 55 week moving average at 100.74 and we would expect this to hold the initial test”.
“However rallies are likely to struggle to regain the 101.60 area and we are suspicious longer term that the market has topped at 105.45 and loss of psychological support at 100.00 would add weight to that view”.
“In order to alleviate immediate downside pressure a recovery through the 102.36 mid May high is needed”.
Key Quotes
“Attention has reverted to the 2014 low at 100.75. This is reinforced by the 55 week moving average at 100.74 and we would expect this to hold the initial test”.
“However rallies are likely to struggle to regain the 101.60 area and we are suspicious longer term that the market has topped at 105.45 and loss of psychological support at 100.00 would add weight to that view”.
“In order to alleviate immediate downside pressure a recovery through the 102.36 mid May high is needed”.