USD/JPY set to slide back to the 55-week ma at 106.86 – Commerzbank

USD/JPY falls for the second straight day and nears the July low at 109.07. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the pair to extend its slide to the 55-week moving average at 106.86.

USD/JPY challenges the July low at 109.07 

“USD/JPY last week tested and held below the 110.70 resistance and this week slipped towards the 109.07 July low. Below it lies the 108.56 late May low and the 107.48 April low.” 

“The 55-week ma lies at 106.86 and we would allow for some consolidation there.”