USD/JPY: Cloud support at 112.16 held – Commerzbank

Sandeep Kanihama FXStreet Contributor

Karen Jones, analyst at Commerzbank, notes that the USD/JPY pair recovered after being sold off towards the base of the cloud at 112.16 and further support is seen along the 8 month support line at 111.93.

Key Quotes

“This may hold the initial test BUT the sell off is looking directional and failure here would target the 110.59/109.77 200 day moving average and August low. If the 109.77 August low were to give way, the June 8 low at 109.20 would be in focus.”

“Failure there would imply a slide back to the 108.12 May 29 low and the midFebruary high at 107.91. Minor resistance comes in along the 55 day ma at 113.07.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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