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Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair remains poised for a probable correction lower.

Key Quotes

USD/JPY is extremely close to the 200 week moving average at 113.29 and is seeing some profit taking here. We note the complex divergence of the daily RSI, the TD perfected set up on the daily chart and together with a 13 count on the 240 minute chart. These all point to a probable correction lower and we would exit any remaining long positions. This represents the break point to 114.73, the November 2017 high. (Our much longer term target is the 125.86 2015 high). The market stays bid above the 110.41 55 day ma”.

“Below the 55 day ma at 110.41 will target the 8 th June low at 109.20. Loss of 109.20 (8th June low) would imply a slide back to the 108.21 29th May low and the mid-February high at 107.91″