USD/JPY remains offered below 120.41 – Commerzbank

By FXStreet FXStreet (Edinburgh) – In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the bearish tone remains intact below the 120.41 level.

“USD/JPY eroded the 6 week uptrend at 119.36 last week and headed straight back into the range”.

“This suggests a reluctance to break down. However it has not done enough to negate the downside and for now we will continue to target the 118.33 March low enroute to the 2012-2015 116.62 uptrend. We look for this to hold the downside and provoke recovery”.

“The market will find initial resistance at 120.41 and tough resistance at 121.76/79, the late August high and the 61.8% retracement. While capped here a negative bias remains entrenched”.
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Source:: FX Street