In view of Karen Jones, technical analyst at Commerzbank, the USD/JPY pair is likely to ease lower in the near-term.
"USD/JPY has stalled at the 55 day ma at 115.02 and is likely to ease lower near term. We view last weeks low at 111.59 as an interim low. A close above the 115.62 19th January high is needed to reintroduce scope to key short term resistance offered by the 16 month resistance line at 118.02."
"Initial support lies at 113.27 (imoku 1). Only below 111.59 would introduce scope to the base of the cloud, which lies at 109.92 and, if seen, 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."
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