Commerzbank: outlook for USD/JPY
Analysts at Commerzbank point out that USD/JPY has reached resistance in the 116.07/11 area (127.2% Fibonacci extension taken from the August low to the September peak and projected up from the October low).
In their view, Elliott wave analysis points at the pair’s correction to 112.65/110.90. The outlook will remain bullish until the pair trades above the support line at 110.74. Key support is at 110.67 (August 2008 high).
Above 116.10 there’s resistance at 116.37 (line connecting highs from 2011). Then there will be little resistance ahead of 117.95 (Oct. 2007 high).