In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional bullish attempts in the pair should remain limited around the 110.80/111.00 area.
Key Quotes
“USD/JPY has tested support between the 55 week moving at 110.22 and the 200 day moving average at 109.86, which is holding on a closing basis. We have no strong view at this juncture, it is possible that it is only a correction lower, but intraday Elliott wave counts are more negative and our bias is negative and we suspect that rallies will remain capped by 110.80/111.00″.
“While the 109.85 200 day ma underpins, we look for a retest of the current August high at 112.15 above which sit the July peak and 200 week moving average at 113.18/35″.
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