USD/JPY: Facing tough overhead resistance – Commerzbank

Karen Jones, analyst at Commerzbank, notes that USD/JPY pair last week eroded the 2018-2020 downtrend at 109.50.

Key Quotes

“The market is approaching the December highs at 109.71/73 and a second more important downtrend from 2015 which lies at 110.20. These should hold the topside and while they hold, we will maintain an overall longer term bearish bias.”

“Failure at 107.65 is needed to reassert downside pressure to the 106.48 October low and the 105.00 region.”

“Only on a weekly chart close above the 2015- 2019 downtrend line at 110.20 (not favoured) would we question our bearish bias and introduce scope to 114.55, the 2018 high.”