USD/JPY immediate resistance is located around 111.70 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair faces immediate resistance in the 111.70 region.

Key Quotes

“USD/JPY last week sold off towards the 50% retracement at 111.02 and is attempting to stabilise. The intraday Elliott wave count is conflicting, but we note the 13 count on the 240 minute chart and suspect that the market will bounce very near term, immediate resistance is the 111.71 200 day ma. Below 111.00 would allow for losses to extend to the base of the cloud at 110.44. Elliott wave counts indicate that we should allow for losses to 109.20”.

“Stays directly offered below 112.90 – this guards the more important 114.38/114.45 band”.