Karen Jones, analyst at Commerzbank, points out that the USD/JPY pair has faltered last week just ahead of much tougher resistance offered by the 200 day ma and the October low at 111.31/41.
“On Thursday it charted a key day reversal and we look for further weakness. Focus has shifted to the 20 day ma at 109.85 and this guards the base of the channel at 109.10. Most of our signals remain negative and we continue to favour failure. The base of the channel at 109.10 guards the 107.75/50 band.”
“Resistance at 111.38/41, the 26th October low, guards 112.23, the 6 th December low and the top of the range at 113.84.”