USD/JPY: Rally is approaching the 2020 high – Commerzbank

USD/JPY’s rally is approaching the 2020 high. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, examines the USD/JPY pair from a technical perspective.

Key quotes

“USD/JPY’s rally is approaching the 112.05/23 February high and 2017- 2020 down channel and we look for this to hold the initial test.” 

“The Elliot wave count on the daily chart is implying a retracement to 109.55, 108.30. However overall upside pressure will be maintained while above 107.65/48.”

“Initial support lies at 107.65, the 8 th January low.”