USD/JPY: Negative outlook – Commerzbank

In view of Karen Jones, analyst at Commerzbank, USD/JPY’s outlook is negative following the failure at the end of last year at the 2018-2020 downtrend at 109.55.

Key Quotes

“It has sold off to the 107.89 November low, which has so far held on a closing basis. This guards the 106.48 October low and eventually the 105.00 region. Initial resistance is the 55 day ma at 108.65/92 and we look for rallies to struggle here.”

“Only on a weekly chart close above the 2015- 2019 downtrend line and the current December high at 109.72/110.27 (not favoured) would we question our bearish bias.”