USD/JPY poised for a rebound – Commerzbank

According to technicals, the pair could attempt a rebound in the near term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has sold off towards the 50% retracement at 111.02 and is attempting to stabilise. The intraday Elliott wave is conflicting, but we note the 13 count on the 120 minute chart and suspect that the market will bounce today. Below 111.00 would allow for losses to extend to the base of the cloud at 110.38. They indicate that we should allow for losses to 109.20”.

“Stays directly offered below 112.90 – this guards the more important 114.38/114.45 band”.