USD/JPY tests and recovers from the 3-month up trend - Commerzbank

Karen Jones, an analyst at Commerzbank offers the technical outlook for trading the USD/JPY pair as we head into the North-American trading session. 

Key quotes:

“Last week USD/JPY sold off to the base of the cloud at 112.46 and the 3-month uptrend at 112.29. This has held the initial test, keeping the range intact and immediate bias neutral, intraday Elliott wave counts have turned more positive and we would allow for recovery to the top of the range at 113.95.”

“Failure at the 112.29 uptrend would target the 110.66/109.77 200 day moving average and August low. If the 109.77 August low were to give way, the June 8 low at 109.20 would be in focus. Failure there would imply a slide back to the 108.12 May 29 low and the mid-February high at 107.91.”