USD/JPY faces resistance at 101.94 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the pair’s upside should find resistance in the 101.90 area.

Key Quotes

“USD/JPY has seen a strong rebound from the 3 month support line at 100.06. The market has seen a fairly emphatic rejection of the four month downtrend at 102.06/07 last week, which has left the market sidelined. Intraday Elliott wave counts are giving conflicting signals today. Failure at the support line will target the 99.55 August low and the 99.00 June low”.

“Overhead resistance is reinforced by the cloud at 101.94 and the 103.55 16th June low”.

“Below 99.00 will trigger further weakness to the 96.40 top of the weekly cloud and potentially the 94.75/61.8% retracement of the move up from 2011”.