Karen Jones, analyst at Commerzbank, suggests that the USD/JPY remains directly offered and has eroded its 200 day ma and near term rallies have been contained by the 111.38 26th October low.
Key Quotes
“It has eroded 109.77, the August low and targets initially the June 8 low at 109.20. Failure there would imply a slide back to the 108.12 May 29 low and the mid- February high at 107.91. Rallies will find initial resistance at the 200 day ma at 111.09 and 111.38 the 26th October low ahead of 112.23 the 6th December low. This guards the top of the range at 113.84. A close above here is needed to confirm scope to the 114.55 October high.”
“Above the market lies the 114.55 October high and the 115.60 61.8% Fibonacci retracement – this represents very tough overhead resistance.”
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