USD/JPY - Approaching November low - Commerzbank

Commerzbank analyst Karen Jones sees the pair falling to 110.85 - End of November low.

Key quotes

USD/JPY is under pressure and attention has reverted to the 110.85 end of November low. Failure here would target the 110.15/108.90 Fibonacci retracements and allowed for a move to the 107.23 2012- 2018 uptrend.

Initial resistance lies at 111.72/112.05. Above here lies the 113.64/75 December highs. There is a lot of resistance directly overhead – namely the 113.92 2015-2018 downtrend line. Above here sits the 114.38/82 major resistance, we continue to favor failure.

Where are we wrong? Above 114.38/82 would target the 118.60 January 2017 high.

Short-Term Trend (1-3 weeks): Capped by the 114.38/82 major resistance.

Long-term trend (1-3 months): Neutral to negative below 114.38/82