USD/JPY erodes the downtrend to point to the 108.15 200-DMA – Commerzbank

The US Dollar recovery gaining traction as the USD/JPY pair is through its near-term downtrend at 106.32. The pair is now near three-week tops, around the 106.70 region and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, looks for the 200-day ma at 108.15.

Key quotes

“USD/JPY has eroded the short-term downtrend at 106.32 which alleviates downside pressure and casts attention to the 200-day ma at 108.15.” 

“Initial support is 105.30, the 6th August low. Last week’s low at 104.20 guards the 103.43/78.6% retracement, which is the last defence for the 101.18 March low.”