USD/JPY has seen a possible false break of its trendline. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to test the 55-day moving average at 109.10.
Break of uptrend not maintained
“USD/JPY has recently eroded the 2021 uptrend but this has not been maintained and we are wondering if this was a false break.”
“The Elliott wave counts have turned more positive and we suspect an attempt higher to the 55-day ma at 109.10 will be made. This remains the barrier to 110.97 and 111.13/38 October 2018 low and mid-February 2019 high.”
“Initial resistance is 108.40, the 23rd March low.”
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