USD/JPY: Reasserted downside pressures - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that the erosion of the 110-110.20 area for USD/JPY has reasserted downside pressures, affecting their view for new rallies to the 112 area and paving the way for a decline to supports at 109.05109.20 (daily Bollinger lower band) ahead of 108.61-108.73 (weekly Bollinger lower band).

Key Quotes

“Caution will be in order as a drop below these last supports would underpin bearish momentum, flagging 106.66 (quarterly Bollinger moving average) as targets. The resistances are located at 110-110.20, at 111, at 111.80-112 and at 112.60.”