USD/JPY: near-term outlook is positive - Commerzbank

Analysts at Commerzbank explained that USD/JPY’s near-term outlook is positive. 

Key Quotes:

"USD/JPY probes the 55 day moving average at 111.86. Around it and the late March high at 112.21 the currency pair may short term stall. Further up the 2017 resistance line can be seen at 113.12. 

Minor support comes in at the 110.11 March low. Only above 115.62 would we look for a challenge to the key resistance offered by the 16-month resistance line at 117.05. 

Where are we wrong? Below 108.13 will target 107.50 July 2016 high and possibly 106.85, the 61.8% retracement. We cannot rule this out but it is not our favoured scenario."