USD/JPY - Attention has reverted to the 110.85 - Commerzbank
|Commerzbank Head of FICC Technical Analysis Karen Jones details the long-term neutral to negative technical set up on the USD/JPY charts.
Key quotes
USD/JPY has sold off from tougher resistance namely the 113.64/75 December highs. There is a lot of resistance directly overhead – namely the 113.92 2015-2018 downtrend line. Above here sits the 114.38/82 major resistance, we continue to favor failure. Attention has reverted to the 110.85 end of November low. Failure here would target the 110.15/108.90 Fibonacci retracements and allowed for a move to the 107.23 2012-2018 uptrend
Where are we wrong? Above 114.38/82 would target the 118.60 January 2017 high.
Short-Term Trend (1-3 weeks): Capped by the 114.38/82 major resistance.
Long-term trend (1-3 months): Neutral to negative below 114.38/82.
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