The USD/JPY pair has sold off to the base of the channel at 104.85. This level and the January high of 104.40 are set to hold the downside, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
“USD/JPY has recently failed at the 55-week ma at 106.15. In this vicinity is also the top of the short-term channel at 106.45 on Tuesday, and the market has slid back to the base of the channel at 104.85. The January peak lies at 104.40 and these two supports should ideally hold the downside.”
“The January high lies at 104.40 and this guards the 103.33, the 21st January low.”
“In order to adopt a more outright positive stance longer-term, the market will need to regain the 55-week ma and recent high at 106.15/23 on a closing basis. Note above the 55-week ma would target the 200-week ma at 109.06.”
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