USD/JPY: Corrective move - Commerzbank

According to Karen Jones, analyst at Commerzbank, USD/JPY pair has seen a slight erosion of the 110.000 resistance and the Elliott wave count continues to say that this move is corrective only, the DMI is negative.

Key Quotes

“The chart remains negative but currently is grinding higher. The market is contained higher in a channel and the top of this is located at 110.51. We are currently in no man’s land sitting below the 200 day ma and the October low at 111.26/41. The base of the channel at 108.64 guards the 107.75/50 band.”

“Resistance at 111.38, the 26th October low, guards112.23 the 6 th December low and the top of the range at 113.84.”