USD/JPY headed to the 110.85 Nov-end low - Commerzbank

In the view of Karen Jones, Analyst at Commerzbank, the USD/JPY pair is poised to test the Nov-end low of 110.85 on a break below the 200-DMA support at 111.72.

Key Quotes:

“USD/JPY is starting to ease back from tougher resistance namely 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 favor failure.”

“Support can be seen at the 112.06/111.99 December 6 and 15 as well as current January lows. Failure there would push the 200-day ma at 111.72 followed by the 110.85 end of November low to the fore.”