According to Karen Jones, analyst at Commerzbank, USD/JPY pair has held over cloud support at 110.78 and looks set to retest tough overhead resistance.

“This includes the 112.13 March high, the 112.04 200 week ma, the 112.43 55 quarter moving average and the 112.80 2015-2019 downtrend. 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. The base of the cloud lies at 108.11.”