USD/JPY remains bid above cloud – Commerzbank

The pair’s stance stays bid and could edge higher to the 114.74 level, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY continues to sit above cloud support and remains bid. We look for further gains to the 114.74 recent high, which may hold the initial test. Above 114.74 would target 118.66, the December 2016 high. The market is underpinned by the 55 day ma (112.46) and cloud support (112.93/15)”.

“Only failure at the cloud support (112.15) would target the 109.77/110.02 200 day ma and August low”.

“If the 109.77 level were to give way (August low), the June 8 low at 109.20 would be in focus. Failure there would imply a slide back to the 108.12 May 29 low and the mid-February high at 107.91”.