USD/JPY further gains on a close above 115.62 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted there is scope for a test of the 118.00 area if 115.62 is cleared.

Key Quotes

“USD/JPY last week recovered from circa the 38.2% retracement at 111.98 area and the 112.02 April high. The market has its sights on the 114.25 Imoku 2 resistance and the 115.62 19th January high. A close above here is needed to reintroduce scope to key short term resistance offered by the 16 month resistance line at 118.06”.

“Below 111.59 would introduce scope to the base of the cloud, which lies at 109.92 and, if seen, we look for this to hold (this is also the 50% retracement of the move up from November). However this is not our favoured view - we also note that the recent move lower continues to indicate that this is the end of the corrective move (this is the case on all the intraday charts as well), we also note the daily RSI has not confirmed the move lower”.

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