USD/JPY downside pressure alleviated above 115.56 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair needs to retake he mid-115.00s in order to mitigate downside pressure.

Key Quotes

“USD/JPY last week bounced off the 112.50 region and we note the divergence of the daily RSI, which suggested a loss of downside momentum. Rallies will need to regain 115.56 (imoku 2) to alleviate downside pressure and this so far has thwarted the upside. Key short term resistance is the 16 month resistance line at 118.26”.

“We are unable to rule out a test of 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”.