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Karen Jones, analyst at Commerzbank points out that the USD/JPY pair is at last seeing failure ahead of much tougher resistance offered by the 200 day ma and the October low at 111.31/41, after last Thursday it charted a key day reversal and we note the divergence of the daily RSI – this is negative.

Key Quotes

“Focus has shifted to the 20 day ma and 55 day ma at 110.31/08 and this guards the base of the channel at 109.46. Most of our signals remain negative and we continue to favour failure. The base of the channel at 109.46 guards the 107.75/50 band.”