USD/JPY end of the move lower? – Commerzbank

In light of the ongoing recovery, the pair’s down move could be drawing to an end, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY is recovering. Last week the market eroded but did not close below the 105.73 200 month ma. We note the 13 count on the daily chart and the complex divergence of the daily RSI and this is usually regarded as a warning signal for the end of the move lower. Initial resistance lies 107.32, the September low”.

“Failure at 105.55 would trigger losses to the 100.70/99.00, the 2016 low. Intraday Elliott counts are suggesting that rallies will now struggle 106.75/107.15”.

“USD/JPY will remain offered while capped by the 110.48 February high. Above here lies the 200 day ma at 111.48 presently”.