USD/JPY: a breakout of 113.00 is favoured – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the outlook on the pair stays neutral in the short term.

Key Quotes

“USD/JPY has maintained upside pressure to the 113.00 resistance line and the top of the cloud at 112.87. We would allow for this to hold the initial test, but longer term favour a break higher. We will need to clear this resistance to set up a run at the 115.51/62 mid January high. Intraday Elliott waves counts suggest that we should allow for a retracement to 111.70/00”.

“Below 108.13 will target 107.50 July 2016 high and possibly 106.85, the 61.8% retracement. We cannot rule this out but it is not our favoured scenario”.