USD/JPY: Capped here – Commerzbank

Karen Jones, analyst at Commerzbank, points out that USD/JPY pair is nearing the 109.28/49 resistance area (August, October and current November highs and 61.8% Fibonacci retracement) which is expected to cap.

Key Quotes

“The 55 and 200 week moving averages are also found nearby at 109.39/87 and the 2015-2019 downtrend at 110.66. While this resistance area caps, near term attention will remain on the recent low at 107.89.”

“Failure here will further alleviate upside pressure and trigger losses to the 106.48 October low. Failure at 106.48 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”