USD/JPY to target the 114.55 October 2018 high on a erosion of 112.23/40 – Commerzbank

Focus remains on key resistance at 112.23/50 as USD/JPY recovers off the 110.80 August high. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to struggle initially at the aforementioned resistance but with an eventual break opening up the 114.55 October 2018 peak.

Break below 110.45 to allow for a deeper slump

“USD/JPY is recovering very near term off the 110.80 August peak and is well placed to rechallenge the important 112.23/50 zone, which represents highs since 2019. This may take a couple of attempts to clear, but an eventual erosion looks possible and above here will introduce scope to 114.55 the October 2018 high.”

“Loss of 110.45 is needed to destabilise the chart and allow for a deeper sell-off.”