USD/JPY is on the defensive - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the USD/JPY pair has very near term failed at 110.00 levels and eroded the 20 day ma at 109.02 and is on the defensive.

Key Quotes

“We would allow for slippage back towards 107.75/50 band and possibly the 104.10 spike low. The recent move lower was exhaustive and we suspect that this will hold for now. Above 110.30 will allow for a retest of the 111.38 the 26th October low.”

“Support at 104.63/10 guards the 100.70 Fibonacci support and the 99.00 2016 low. Initial support lies 107.77, 10th January 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.”