USD/JPY expected to correct to 109.15-108.50 – Commerzbank

Pablo Piovano FXStreet

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is seen correcting lower to the 109.15-108.50 band.

Key Quotes

“USD/JPY has reversed ahead of the 112.21 2015-2018 downtrend and has now eroded the accelerated uptrend. We note that the Elliott wave count is suggesting a 109.15-108.50 move, this is a correction only - we are not looking for complete failure here. Initial support lies at the recent low at 108.65 (4 th May low) and the 107.90 mid-February high”.

“Below 107.90 targets the 106.68 base of the cloud and then the March low at 104.56”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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