According to Karen Jones, analyst at Commerzbank, after the USD/JPY has held over cloud support at 111.13, it looks set to test tough overhead resistance, which includes the 112.13 March high, the 112.43 55 quarter moving average and the 112.72 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. Above the 112.72 downtrend will target the 114.55 October 2018 high.”