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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is seen correcting lower to the 109.15-108.50 band.

Key Quotes

USD/JPY has reversed ahead of the 112.21 2015-2018 downtrend and has now eroded the accelerated uptrend. We note that the Elliott wave count is suggesting a 109.15-108.50 move, this is a correction only – we are not looking for complete failure here. Initial support lies at the recent low at 108.65 (4 th May low) and the 107.90 mid-February high”.

“Below 107.90 targets the 106.68 base of the cloud and then the March low at 104.56″.