USD/JPY expected to fail above 107.00 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could fail in around 107.16 in the near term.

Key Quotes

“USD/JPY is probing the base of its cloud at 107.16 which is currently holding and the near term risk is for failure here. The intraday Elliott wave counts remain neutral and we have no strong bias. Above the 107.49 level (this week’s high) there is scope to the 38.2% retracement at 107.90/95, and possibly the 50% retracement at 108.98. Dips lower will find initial support at the 106.30 20 day ma and the 105.24 2^nd March low”.

“Below 104.56 would introduce scope to 103.22, then 100.69 (Fib retracements). This is not favoured”.