USD/JPY faces strong resistance in the 114.38/82 band – Commerzbank

The pair’s renewed upside momentum should face a tough hurdle in the 114.38/82 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has started to recover just ahead of good nearby support offered by the base of the cloud at 110.78. It has eroded its 200 day ma at 111.69 and the move above here has alleviated immediate downside pressure. Minor resistance at 112.90/96 (31st Oct low) guards the 114.38/82 major resistance”.

“Below the cloud, we remain unable to rule out losses to extend to the 78.6% retracement at 108.90”.

“Approaching the 2015-2017 resistance line”.