USD/JPY: has eroded trend line support - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the USD/JPY pair’s any near-term recovery attempt seems more likely to meet with some fresh supply near the 112.50-70 region. 

Key quotes:

“USD/JPY has eroded its 4 month uptrend at 112.39 as expected. The intraday Elliott wave counts are overwhelming bearish and are suggesting that rallies will fail circa 112.50/70.”

“We look for losses to the 200 day ma at 111.68 followed by the 110.85 end of November low.”

“Overhead the market faces the 113.93/114.00 2015-2018 downtrend and the 114.38/82 major resistance.”

“Above 114.38/82 this would target the 118.60 January 2017 high.”