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Karen Jones, analyst at Commerzbank, suggests that USD/JPY’s is side lined and note that the Elliott wave count is implying a deeper retracement into the 108.65/109.25 band ahead of failure, but the market appears to be failing just ahead of here.

Key Quotes

“We continue to look for losses to the 78.6% retracement at 105.87. Minor resistance comes in at the 110.84 April 10 low and the 110.91 200 day moving average. These guard the 2015-2019 downtrend at 112.07.”

“We look for the market to remain capped by its 112.07 2015-2019 downtrend, only above here would target the 114.55 October 2018 high.”