USD/JPY: 121.80 to cap the topside – CB

By FXStreet FXStreet (Guatemala) – Karen Jones, chief analyst at Commerzbank noted the technical conditions surrounding USD/JPY.

Key Quotes:

“The market has failed recently at the 61.8% retracement at 121.80. We look for this to continue to cap the topside and we then look for a retest of 118.33/25 (March low) en route to the 116.15/115.85 2015 low and the recent low.

Directly below here lies the 2012-2015 115.56 uptrend. Below here lies the 23.6% retracement of the entire move up from the 2011 low – this is located at 113.98. We look for this to hold the initial test.

Only below 113.98 would imply another leg lower to 106.60/105.85 – the 38.2% retracement of the move up from 2011. This is also the location of the 200 month ma and we would anticipate that this will hold.”
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Source:: FX Street