USD/JPY: Facing tough overhead resistance - Commerzbank

Karen Jones, Analyst at Commerzbank, maintains a neutral to negative outlook for the USD/JPY pair and expects any meaningful up-move to be capped by the 114.38/82 major resistance.

Key quotes:

“USD/JPY will shortly encounter tougher resistance namely the 113.64/75 December highs. There is a lot of resistance directly overhead – namely the 113.92 2015-2018 downtrend line. Overhead sits the 114.38/82 major resistance, we continue to favour failure.”

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

“Support can be seen at the 112.06/111.99 December 6 and 15 as well as current January lows. Failure there would push the 200 day ma at 111.71 followed by the 110.85 end of November low to the fore.”