USD/JPY is again approaching the 110.60/85 resistances. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, had been expecting a top here but now is considering a continuation pattern.
Watch out the 110.50/85 band
“USD/JPY is again approaching the 110.60/85 resistances. We had been viewing this as a potential top, BUT it could be a continuation pattern, so we will wait and see what happens in the 110.50/85 band.”
“We will maintain a negative bias for now while below 110.85 and we look for a retest of the 109.07 and 108.73 recent lows.”
“A drop through 108.56 (end of May low) would engage the 107.48 April low. The 55-week ma lies at 107.14 and we would allow for some consolidation there.”