USD/JPY: Neutral to negative below 114.38/82 - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the USD/JPY pair is likely to accelerate its up-move from the 112.00 handle once the 113.29 resistance is decisively taken out.

Key quotes:

“USD/JPY’s rally off its mid-December low at 112.04 has taken it back to the three month resistance line at 113.29. If bettered, the 113.64/75 December highs will be back in the picture but may well cap.”

“There is a lot of resistance directly overhead – namely the 113.92 2015-2018 downtrend line. Overhead sits the 114.38/82 major resistance.”

“Above 114.38/82 would target the 118.60 January 2017 high.”

“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 111.70 followed by the 110.85 end of November low to the fore.”