USD/JPY eyes 110.15 - Coomerzbank

USD/JPY has eroded the support of November low and now looks set to test 110.15 levels, says Commerzbank Analyst Karen Jones. 

Key quotes

USD/JPY came under increasing downside pressure and has eroded the 110.85 end of November low. Failure here targets the 110.15 and 108.90 Fibonacci retracements and allows for a move to the 107.34 2012-2018 uptrend. Intraday rallies are indicated to fail 111.40/70.

Initial resistance lies at 111.72/112.05. Above here lies the 113.64/75 December highs. There is a lot of resistance directly overhead – namely the 113.92 2015-2018 downtrend line. Above here sits the 114.38/82 major resistance, we continue to favour failure.

Where are we wrong? Above 114.38/82 would target the 118.60 January 2017 high.

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

Long-term trend (1-3 months): Neutral to negative below 114.38/82.