Karen Jones, analyst at Commerzbank, suggests that the intraday Elliott wave counts remain negative for the USD/JPY pair as the daily Elliott wave count continues to indicate failure ahead of 110.30 indicating that the correction higher is coming to an end.
“We would then allow slippage back towards 107.75/50 and possibly the 104.10 spike low. The recent move lower was exhaustive and we suspect that this will hold for now. Above 110.30 will allow for a retest of the 111.38 the 26th October low. Support at 104.63/10 guards the 100.70 Fibonacci support and the 99.00 2016 low. Initial support lies 107.77, 10th January low.”
“Resistance at 111.38, the 26th October low, guards112.23 the 6 th December low and the top of the range at 113.84.”