USD/JPY risks a test of 111.98 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analisys at Commerzbank, s a visit to 111.98 still remains on the cards.

Key Quotes

“USD/JPY is holding circa 112.50 and we note the divergence of the daily RSI, while we are unable to rule out losses to the 38.2% retracement at 111.98 area, we note that the recent move lower continues to indicate that this is the end of the corrective move. Intraday we note the TD perfected set up and would allow for a small rally but note that rallies are indicated to hold circa 114.00”.

“Below 111.98 would trigger losses 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)”.