In view of Karen Jones, analyst at Commerzbank, USD/JPY remains extremely bid near term.
“The market is approaching a second, more important, downtrend from 2015 which lies at 110.20. This should hold the topside and while it holds, we will maintain an overall longer term bearish bias. Failure at 107.65 is needed to reassert downside pressure to the 106.48 October low and the 105.00 region.”
“Only on a weekly chart close above the 2015- 2019 downtrend line at 110.20 would we question our bearish bias and introduce scope to 114.55, the 2018 high.”