According to Karen Jones, analyst at Commerzbank, USD/JPY is being drawn ever closer to 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 failure shortly. Focus has shifted to the 20 day ma at 110.03 and this guards the base of the channel at 109.26. Most of our signals remain negative and we continue to favour failure. The base of the channel at 109.26 guards the 107.75/50 band.”
“Resistance at 111.38/41, the 26th October low, guards 112.23, the 6th December low and the top of the range at 113.84.”