USD/JPY: Neutral to negative outlook – Commerzbank

Sandeep Kanihama FXStreet Contributor

Karen Jones, analyst at Commerzbank, suggests that USD/JPY’s outlook is neutral to negative – it remains capped by the 2018-2020 downtrend at 109.52, but is showing a reluctance to sustain a break below the 107.89 November low, which has so far held on a closing basis.

Key Quotes

“The low overnight was 107.65 and this guards the 106.48 October low and the 105.00 region. Initial resistance is the 55 day ma at 108.91/109.07 and we look for rallies to struggle here, the intraday Elliott wave counts are also indicating failure here.”

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

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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