USD/JPY could still test 112.00 and above – Commerzbank

Another visit to the 112.00 handle and beyond remains on the cards for the pair as long as 109.86 underpins, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has tested support between the 55 week moving at 110.22 and the 200 day moving average at 109.86, which is holding on a closing basis. We have no strong view at this juncture, it is possible that it is only a correction, but intraday Elliott wave counts are more negative”.

“While the 109.86 200 day ma underpins, we look for a retest of the current August high at 112.15 above which sit the July peak and 200 week moving average at 113.18/35”.