Karen Jones, analyst at Commerzbank, points out that the USD/JPY pair has at last sold off following its recent key week reversal from the 112.59 2015-2019 downtrend.
Key Quotes
“It has reached the bottom of the daily cloud at 110.31 which has so far held the initial test. Rebounds are likely to remain tepid.”
“Intraday rallies are likely to fail ahead of the 111.07 gap and this is likely to trigger losses to the 109.70 low, which guards the 38.2% retracement at 109.06 and there is scope for the 50% retracement at 108.11.”