USD/JPY downside appears limited – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted that further pullbacks in spot could be limited.

Key Quotes

“USD/JPY has backed away from the 200 day ma at 110.64 and near term downtrend at 110.18. Nearby support is the 55 week ma at 108.74, below here, there is scope for slippage to the 108.13 April low, however we suspect that the downside may be limited. The new low has not been confirmed by the daily RSI and intraday day Elliott wave counts continue to suggest that we are near to a low”.

“Rallies will need to regain 112.13 to retarget the 114.38 recent high”.