USD/JPY: Market stays immediately offered - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that USD/JPY’s correction higher has so far been thwarted by the 20 day ma at 108.05, and the market stays immediately offered below the near term downtrend at 108.23.

Key Quotes

“We note that the Elliott wave count is implying a deeper retracement into the 108.65/109.25 band ahead of failure and for now will stay side lined. We continue to look for losses to the 78.6% retracement at 105.87.”

“Above the near term downtrend, minor resistance comes in at the 110.84 April 10 low and the 111.03 200 day moving average. These guard the 2015-2019 downtrend at 112.14.”

“We look for the market to remain capped by its 112.14 2015-2019 downtrend, only above here would target the 114.55 October 2018 high.”