Yesterday, King Dollar was crowned by the Fed. Subsequently, the USD/JPY pair shot up towards the March high at 110.97. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, lays out the next levels to watch.
Upside pressure while above the 109.80 level
“USD/JPY’s bounce off the 55-day moving average at 109.24 has taken it back towards the 110.97 March high. Further up sit the 111.13/38 October 2018 low and mid-February 2019 high.”
“Immediate upside pressure should be maintained while the currency pair stays above yesterday’s low at 109.80.”
“The cross maintains an overall positive bias above the 108.56 late May low.”
“Our medium-term target is 112.23/50 which represents the April 2019 high, the 2020 high and a long term Fibonacci retracement.”