USD/JPY support expected to emerge at 111.60/109.60 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional bearish attempts should find support in the 111.60/109.60 band.

Key Quotes

“USD/JPY continues to consolidate at the 100 week ma at 114.74, this together with a divergence of the daily RSI and a 13 count does point to a near term correction lower/consolidation”.

“Dips lower are expected to hold the 111.60/109.60 zone for a reattempt on the topside. Above here we also have the 115.41 top of the weekly cloud (this is also the location of the 61.8% retracement of the move 2015-2016) and we are allowing for a near term consolidation. Intraday Elliott wave counts are not as negative and we have raised our take profit level”.

“Above 115.41 would target 120.00/120.10, the 78.6% retracement of the move down from 2015”.