Market commentary from the firm's head of FICC technical analysis, Karen Jones
She says that the pair is poised to extend the sideline theme that it is currently in for the "very near term".
"Last week USD/JPY practically reached the September low at 107.32 before coming off again. Further sideways trading between last week's high and the current March low at 107.30 and 105.24 should be seen today", Jones argues.
She adds that "a rise above the 107.32 level would have the February 21 and 27 highs in its sights and if bettered, the 110.48 February high would be back in the picture as well".
Meanwhile, she notes that failure to hold above 105.24 opens up a move to 105.00 which would be a key psychological level. If a daily close finds its way below 105.00, it would trigger further downside in the pair" to the 101.19/99.00 June-to-November 2016 lows".
Pick your poison. From the chart, I'm still seeing a series of lower highs and lower lows but that's just me.
