According to Karen Jones, analyst at Commerzbank, USD/JPY’s near term rebound is viewed as corrective only and should terminate ideally around the 50% retracement at 110.71.

“The market recently charted a key week reversal from the 112.46 2015-2019 downtrend. Failure here should concentrate attention on the recent low at 109.02. Failure at 109.02 would push the late January low at 108.49 and the 50% retracement at 108.25 to the fore. Further down sits the 107.27 61.8% Fibonacci retracement. Minor resistance comes in at the 110.84 April 10 low and the 111.43 200 day ma, these guard the 112.46 downtrend. Above the 112.46 downtrend lies the 114.55 October 2018 high.”