USD/JPY: Immediate bias neutral - Commerzbank
Karen Jones, analyst at Commerzbank, suggests that USD/JPY is likely to keep its immediate bias neutral as it continues to recover from the 3 month uptrend at 112.41, keeping the range intact.
“Intraday Elliott wave counts have turned more positive and we would allow for recovery to the top of the range at 113.90. A close above here is needed to confirm scope to the 114.55 October high. Failure at the 112.41 uptrend would target the 110.81/109.77 200 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 mid-February high at 107.91.”
“Above the market lies the 114.55 October high and the 115.60 61.8% Fibonacci retracement - this represents very tough overhead resistance.”