Karen Jones, Analyst at Commerzbank, suggests that the USD/JPY is likely to slide back into the range possibly to the 2 month support line at 112.15 and then hold after last week rallied to and failed at the 114.01 resistance line.
Key Quotes
“Above the market lies the 114.55 October high and the 115.60 61.8% Fibonacci retracement – this represents very tough overhead resistance. The 55 day ma at 113.05 guards the base of the cloud at 112.16 and the 112.15 support line.”
“Only failure at the 112.16 cloud support and support line would target the 110.49/109.77 200 day moving average and August low. If the 109.77 August low were to give way, the June 8 low at 109.20 would be in focus. Failure there would imply a slide back to the 108.12 May 29 low and the mid-February high at 107.91.”
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