USD/JPY bullish above 122.85/123.01 – Commerzbank

FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair keeping the bullish outlook while above the 122.85/123.01 area.

Key Quotes

USD/JPY continues to chart tight ranges following its recent key day reversal and we would allow for some slight near term weakness”.

“The Elliott wave count is suggesting only a shallow retracement to 123.60 is likely to be seen ahead of recovery”.

“We will retain our medium term bullish forecast while the 123.01 late July low and 50% retracement at 122.85 underpins, however. Only failure there would mean that a slip back towards 121.30 2015 uptrend is likely”.

“The June peak at 125.86 and the May 1997 high at 127.48 will only be back in the picture if a rise above the recent high at 125.28 is seen. This currently looks to be unlikely”.

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