USD/JPY looks set to extend gains to the 110.30 region – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the USD/JPY looks set to extend gains to the 110.30 region before failure, after last week eroded the 20 day ma.

Key Quotes

“We would then allow slippage back towards the 104.10 spike low. The recent move lower was exhaustive and we suspect that this will hold for now. Above 110.30 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. Initial support lies 107.77, 10th January 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.”