USD/JPY: Contained higher within a channel – Commerzbank

Karen Jones, analyst at Commerzbank, point out that USD/JPY has seen a slight erosion of the 110.00 resistance, while the Elliott wave count continues to say that this move is corrective only, the DMI is negative – but the market continues to grind higher.

Key Quotes

“It is being contained higher in a channel and the top of this is located at 110.56. We are currently in no man’s land sitting below the 200 day ma and the October low at 111.26/41, we remain suspicious of the current rally and will elect to sell the rally. The base of the channel at 108.70 guards the 107.75/50 band.”