USD/JPY has found support along the 2021 uptrend line at 109.72. The pair is now set to consolidate before challenging the 110.97 March high again, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.
Positive above the 108.56 late May low
“Last week, USD/JPY faltered at 110.82, marginally below the 110.97 March high below which it is likely to consolidate further early this week. Once bettered, however, the 111.13/38 October 2018 low and mid-February 2019 high would be next in line.”
“While the currency pair stays above the June 16 and 21 lows as well as the 2021 uptrend line at 109.80/72 immediate upside pressure should remain in play. The cross should maintain 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.”