USD/JPY probes minor resistance at 113.27 - Commerzbank

In the view of Axel Rudolph, Senior Analyst at Commerzbank, the USD/JPY pair needs to clear the minor resistance at 113.27 for further upside targets.

Key Quotes:

“USD/JPY held around its mid-December low at 112.04 and retests the 55-day moving average at 112.96. Together with the three-month resistance line at 113.27, we expect it to cap the cross. We look for losses to the 200-day ma at 111.69 followed by the 110.85 end of November low on a fall below the 112.06/111.99 December 6 and 15 as well as current January lows. Overhead the market faces the 114.01 2015-2018 downtrend and the 114.38/82 major resistance.“

“Above 114.38/82 would target the 118.60 January 2017 high.”

“Short Term Trend (1-3 weeks): Capped by the 114.38/82 major resistance.”