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USD/JPY bullish above 122.85/123.01 – Commerzbank

FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, reiterated the bullish stance for the pair in the medium term.

Key Quotes

USD/JPY Wednesdays key day reversal suggests that an interim top has been formed at 125.28 and we are likely to see the market ease back to the 55 day moving average at 123.68”.

“Looking at the daily chart, the Elliott wave count is suggesting only a shallow retracement to 123.60 is likely to be seen ahead of recovery”.

“We will retain our medium term bullish forecast while the 123.01 late July low and 50% retracement at 122.85 underpins, however”.

“Only failure there would mean that a significant top has been formed at 125.28 and that a slip back towards 121.30 2015 uptrend is likely”.

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