USD/JPY sees a false break of the uptrend, targets the 109.10 mark – Commerzbank

USD/JPY has seen a possible false break of its trendline. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to test the 55-day moving average at 109.10.

Break of uptrend not maintained

“USD/JPY has recently eroded the 2021 uptrend but this has not been maintained and we are wondering if this was a false break.” 

“The Elliott wave counts have turned more positive and we suspect an attempt higher to the 55-day ma at 109.10 will be made. This remains the barrier to 110.97 and 111.13/38 October 2018 low and mid-February 2019 high.” 

“Initial resistance is 108.40, the 23rd March low.”