USD/JPY: Market remains near term up side corrective – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the USD/JPY’s correction higher is losing steam, the intraday Elliott wave counts remain negative and the daily Elliott wave count continues to indicate failure at 110.30.

Key Quotes

“We would then allow slippage back towards 107.75/50 and possibly the 104.10 spike low. The recent move lower was exhaustive and we suspect that this will hold for now.”

“Above 110.30 will allow for a retest of the 111.38 the 26th October low. Support at 104.63/10 guards the 100.70 Fibonacci support and the 99.00 2016 low. Initial support lies 107.77, 10th January low.”

“Resistance at 111.38, the 26th October low, guards112.23 the 6 th December low and the top of the range at 113.84.”