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Karen Jones, analyst at Commerzbank, suggests that USD/JPY is approaching key resistance offered by the 108.99 July high, while its intraday Elliott wave counts have turned positive.

Key Quotes

“A close above here looks increasingly likely and would imply that the market has based near term and initiate recovery to the 200 day ma at 110.52. Support is offered by the 107.32 uptrend which would be likely to act as a near term break point to the 106.78 recent low and eventually 105.87, the 78.6% retracement of the move seen this year. The 110.67 April 21 high guards the 2015-2019 downtrend at 111.81.”

“We look for the market to remain capped by its 111.81 2015-2019 downtrend. Only above here would target the 114.55 October 2018 high.”