USD/JPY: pair accelerating climb to new high versus higher 10-year US rates, Commerzbank is targeting 115

In a note published Thursday morning, Commerzbank posted a bullish opinion on the USD/JPY pair, which is perfectly in line with the upward acceleration that we saw yesterday morning, with new highs, after the pair approached 110 Wednesday night.

Commerzbank points out that Japanese economic data, including Q1 GDP, has proved "very bad", which reduces the chances of the BoJ moving in a direction that would be favorable to the yen.

In this context, the bank anticipates a continuation of the increase and has a target of 115.00 by the end of the year.

Getting back to the USD/JPY's short-term prospects, it should be noted that yesterday morning's bullish acceleration seems to be due to new highs above 3.1% on the US 10-year rate.

In the event of a continuation of the rise, the resistances of 110.48-50 (peak on 2 February 2018), then 111.00-111.15 and 111.45-111.50 will be monitored. On the downside, the first credible support level is at 110.00.

Currently, the USD/JPY is trading around 110.45 on the forex.