USD/JPY sidelined between 111.59-114.83 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair rangebound between 111.59 and 114.83.

Key Quotes

“The market came under increasing downside pressure following the failure to clear the 55 day ma at 114.83. The market has eased back to Fibonacci and cloud support. We view the recent low at 111.59 as an interim low. Between 111.59/114.83 the market is side lined. A close above the 115.62 19th January high is needed to reintroduce scope to the key short term resistance offered by the 16 month resistance line at 117.91”.

“Only below 111.59 would introduce scope to Fibonacci support at 109.92 and, if seen, the 200 day ma at 107.69. We look for this to hold (this is also the 50% retracement of the move up from November). However this is not our favoured view - we also note that the recent move lower continues to indicate that this is the end of the corrective move”.