USD/JPY: Correction higher remains – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the USD/JPY’s daily Elliott wave count continues to indicate failure ahead of 110.30 as correction higher remains and the intraday Elliott wave counts remain negative.

Key Quotes

“We would then allow slippage back towards 107.75/50 and possibly the 104.10 spike low. The recent move lower was exhaustive and we suspect that this will hold for now.”

“Above 110.30 will allow for a retest of the 111.38 the 26th October low. Support at 104.63/10 guards the 100.70 Fibonacci support and the 99.00 2016 low. Initial support lies 107.77, 10th January low.”