According to Karen Jones, analyst at Commerzbank, USD/JPY pair has remained stuck between cloud support at 111.21 and tough overhead resistance, which includes the 112.13 March high, the 112.43 55 quarter moving average and the 112.72 2015-2019 downtrend.

Key Quotes

“This is extremely tough resistance and should cap the topside. Failure at cloud support is needed to alleviate immediate upside pressure and will re-target the 109.70 recent low.”

“The 109.70 low guards the 38.2% retracement at 109.06 and there is scope for the 50% retracement at 108.11.”

“Above the 112.72 downtrend will target the 114.55 October 2018 high.”