USD/JPY stays downside corrective near term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains downside corrective in the short term horizon.

Key Quotes

“USD/JPY has failed at the top of the range at 114.38/67 (this is where the May and July highs were made and also the 2015-2017 downtrend) and has eroded its short term uptrend – it remains downside corrective near term. However upside risks are growing longer term and while dips lower are contained by 111.74/83 (the 200 day ma and the 55 week ma) an upside bias will persist. Above 114.67 will introduce scope to the 118.60/66 January high. Intraday rallies are indicated to terminate 113.50”.

“The 55 day ma guards the 109.55 mid-September low and in turn this support guards the 108.81/13 April and June lows as well as the September low at 107.32”.