USD/JPY: Key day reversal to warrant stability for the yen – Commerzbank

Yen weakness is seen across the board. Nonetheless, the USD/JPY pair posted a Key day reversal which points to stabilization, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

USD/JPY may slide back to the 55-week ma at 106.86

“USD/JPY slipped below the 109.07 July low but managed to level out above the 108.56 late May low by making a key day reversal at 108.73 yesterday, pointing to short-term stabilization.”

“Minor resistance comes in along the 55-day moving average at 110.02 and is currently in focus. Above it sits the late July high at 110.59.”

“Only a drop through 108.56 would engage the 107.48 April low. The 55-week ma lies at 106.86 and we would allow for some consolidation there.”