USD/JPY: Negative bias remains below 109.09 – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that as long as USD/JPY pair remains capped by the 109.09 resistance, it will remain offered and is bid this morning, but the intraday Elliott wave counts continue to suggest that this is corrective only.

Key Quotes

“It is back under pressure and we would allow slippage back towards the 104.10 spike low. The recent move lower was exhaustive and we suspect that this will hold for now. A negative bias remains intact while capped by 109.09, last week’s high. Above here will allow for a retest of the 111.38 the 26th October low. Support at 104.63/10 guards the 100.70 Fibonacci support and the 99.00 2016 low.”

“Resistance at 111.38, the 26th October low, guards112.23 the 6 th December low and the top of the range at 113.84.”