USD/JPY: Range trading – Commerzbank

Axel Rudolph, analyst at Commerzbank, notes that USD/JPY continues to trade in a tight range just below the 109.71/79 resistance zone, made up of the current December highs and also the November 2018 to 2019 downtrend line as well as the 200 week moving average.

Key Quotes

“Only if the 109.71/79 area were to successfully be exceeded on a daily chart closing basis, would the 2015-2019 downtrend line at 110.38 be back in the picture. We expect it to cap, if reached, however.”

“Support can still be seen between the 200- and 55-day moving averages as well as the current December low at 108.76/43. Only unexpected failure at 107.89 would probably trigger losses to the 106.48 October low. Failure at 106.48 would target the 106.00 mark.”

“On a weekly chart close above the 2015-2019 downtrend line and the current December high at 109.72/73.”