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Flash: USD/JPY approaching its long term Fibo resistance at 105.49 - Commerzbank

FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that USD/JPY extended its gains at the end of the year towards the 105.48/50 61.8% retracement of the move down from the 2007 peak to the 2011 low.

Key Quotes

“We would allow for some profit taking to be seen here, as we note the daily RSI has failed to confirm this new high and also the 13 count on the Tom de Mark study, both imply at least some consolidation.”

“Dips lower should find good near by support offered by the 20 day ma at 104.00. Longer term, the market last year broke up from a large triangle and this points to a longer term target of 108.86.”

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