USD/JPY: Dense overhead resistance - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the USD/JPY pair is facing dense overhead resistance including the 112.13 March high, the 112.04 200 week ma, the 112.43 55 quarter moving average and the 112.80 2015-2019 downtrend, which is extremely tough resistance and they favour failure shortly.

Key Quotes

“It continues to remain underpinned by cloud support at 110.75 and its 3 month uptrend at 110.78. Failure here is needed to alleviate immediate upside pressure and will re-target the 109.70 recent low. The 109.70 low guards the 38.2% retracement at 109.06 and there is scope for the 50% retracement at 108.11. The base of the cloud lies at 108.09.”