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USD/JPY heading to the 100 handle?

FXstreet.com (London) - USD/JPY is 102.52 at the time of writing and remains within the descending channel. Where is this heading?

Karen Jones, Head of Technical Analysis at Commerzbank notes the Elliott wave count on the daily chart suggests a retracement back to 100.91/100.16 remains viable. They also said however that while underpinned by the cloud on the 240 minute chart at 102.26, they are assuming an immediate upside bias. “Longer term, the market has recently broken up from a large triangle points to a longer term target of 108.86. We have an additional target en route at 105.48, the 61.8% retracement of the move down from 2007.”

USD/JPY Levels

The 20 DMA is 101.52, the 50 DMA is 99.46 and the 200 DMA is 98.64. RSI (14) reads 63.81. Supports are ascending from 101.78, 102.23 and 102.45. Spot is 102.55, 102.67, 103.06, 103.23, 103.45 and 103.57.

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