USD/JPY: Spike lower is exhaustive – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that USD/JPY is likely to witness consolidation/correction higher in near-term as its major sell on the 3rd January was exhaustive.

Key Quotes

“It has spiked through the 104.56 2018 low, but did not register a close below here and we suspect it will attempt to recover. It has halted at 104.10. While near term rallies are contained by the 111.38 26th October low, it will probably consolidate. Initial resistance lies at the accelerated downtrend at 109.71. Support at 104.63/10 guards 100.70 Fibonacci support and the 99.00 2016 low.”

“Resistance at 111.38, the 26th October low, guards112.23 the 6 th December low and the top of the range at 113.84.”