USD/JPY stays relatively quiet around mid-113.00s on Monday. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notices that a break below 113.26 would clear the way for a potential slump to the 111.66 July high. 

USD/JPY targets 114.55 while above 113.26

“USD/JPY is consolidating above 113.26, it is on the defensive and looks increasingly toppy.”

“Should a close below the 113.26 recent low be seen we would allow for a deeper sell-off to 112.56, the 38.2% retracement, and potentially the 111.66 July high.”

“While above the 113.26 support, scope will remain for 114.55/69 the November 2017 high and recent high. Above 114.55/69 we have 115.60, the 61.8% retracement of the move down from 2015 and then the 117.06 the 1998-2021 resistance line.”