According to Karen Jones, analyst at Commerzbank, USD/JPY pair has started to back away from dense overhead resistance including the 112.13 March high, the 112.04 200 week ma, the 112.43 55 quarter moving average and the 112.80 2015-2019 downtrend, which is an extremely tough resistance.
Key Quotes
“Attention has reverted to cloud support at 110.78 and its 3 month uptrend at 110.98 (which is starting to be eroded). Failure here is needed to alleviate immediate upside pressure and will re-target the 109.70 recent low.”
“The 109.70 low guards the 38.2% retracement at 109.06 and there is scope for the 50% retracement at 108.11. The base of the cloud lies at 108.11.”
“Above the 112.80 downtrend will target the 114.55 October 2018 high.”
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