USD/JPY: Market attempts to absorb the massive move - Commerzbank

According to Karen Jones, analyst at Commerzbank, USD/JPY’s recent major sell off was exhaustive and the market seems to absorb the massive move, with a near term correction higher being visible.

Key Quotes

“It briefly spiked through the 104.56 2018 low, but did not register a close below here and we suspect it will attempt to recover. Initial resistance is the 109.17 accelerated downtrend and intraday Elliot wave counts continue to indicate likely failure in this vicinity. While near term rallies are contained by the 111.38 26th October low, it will remain offered.”

“Support at 104.63/10 guards 100.70 Fibonacci support and the 99.00 2016 low.”