FXStreet (Edinburgh) – According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, USD/JPY could retreat to the 120.85/75 area prior to another leg higher.
Key Quotes
“USD/JPY’s recent new high of 125.86 has not been confirmed by the daily RSI and we have seen a sharp sell off”.
“The intraday Elliott wave count is suggesting that we allow for a retracement to approximately 120.85/75 ahead of further gains – this is the April high and the 55 day ma”.
“Beyond this It remains on target for 128.00/15 – this is a measured upside target from an ascending triangle, which completed recently”.
“Dips lower should find the 122.04 March high offers support. Key support is considered to be the 5 month uptrend at 119.56 and while above here we remain bullish”.
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