USD/JPY could still test 112.32/111.77 – Commerzbank
In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, a test of the 112.32/111.77 band still remains on the cards.
“USD/JPY remains on the defensive having recently failed at the top of the range at 114.38/49 (May and July highs and the 2015-2017 downtrend). The near term risk is for a deeper retracement to 112.32/111.77 (the 55 day ma, 200 day ma and the 55 week ma). Ideally this will hold, while above here scope will remain for recovery to
114.58 longer term. This is the break point to the 118.60/66 January high”.
“The 111.65 mid October low guards the 109.55 mid-September low and in turn this support guards the 108.81/13 April and June lows as well as the September low at 107.32”.