Karen Jones, analyst at Commerzbank, points out that USD/JPY has again stalled and looks set to ease back to the short term up trend at 108.15 today.
Key Quotes
“Overhead resistance extends from current levels up to the 2015-2019 downtrend at 110.85 (the 55 and 200 week moving averages are found ahead of here at 109.60/110.02). This is formidable resistance and it should hold the topside.”
“Near term the market is bid while above the uptrend and we would allow for some upside probes. Failure at last weeks low of 107.89 is needed to alleviate upside pressure and trigger losses to the 106.48 October low.”
“Failure at 106.48 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”
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