USD/JPY risks remain on the downside – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that USD/JPY risks remain for losses to 115.550 levels, below which the pair might target 113.50/111.55 levels.

Key Quotes

“USD/JPY remains under pressure and the risk remains for losses to 115.55/50 (Mid December low and the 38.2% retracement). We are now close to this initial target and would tighten stops on any shorts Below here would introduce scope for a retracement towards 113.50/111.55.”

“Initial resistance is offered by the 55 day ma at 118.12, tougher resistance is the 120.15 band and directly above the market lies the 122.58/123.40 major resistance, this is the location of the 14 year downtrend and the long term Fibonacci retracement. It is also TD resistance on the weekly chart and we note the 13 count on the monthly chart. This is extremely tough resistance.”

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