USD/JPY expected to meet contention in the 111.80/83 region – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s decline should meet support in the 111.80/83 band.

Key Quotes

“USD/JPY has sold off to and is starting to erode the 20 day ma found at 113.00 yesterday. The market last week reversed just ahead of the 2017 high at 114.74. We note the 13 count and will look for a slightly deeper corrective phase near term, but we look for dips lower to be contained by the 111.80/83 late August high and 55 day moving average. Uptrend support lies at 111.55”.

“Above 114.74 would target 118.66, the December 2016 high”.