USD/JPY: Further upside still in play - Commerzbank

Karen Jones, Analyst at Commerzbank, offer her technical view for trading the USD/JPY pair in the day ahead.

Key Quotes:

“USD/JPY has eroded the 55-day ma at 112.86 and is bid in its range. Overhead the market faces the 114.38/82 major resistance. Dips lower should find initial support offered by the uptrend at 112.01. Below here lies the 200-day ma at 111.62 ahead of the base of the cloud at 111.03. Intraday Elliott wave count suggests that dips lower will hold circa 112.90. Below the cloud, we remain unable to rule out losses to extend to the 78.6% retracement at 108.90.”

“Short Term Trend (1-3 weeks): Capped by the 114.38/82 major resistance.”