In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional upticks in spot are likely to meet initial hurdle around 110.85.
“USD/JPY is weighing on the downside. It remains under pinned by the August and September lows at 108.27/107.32. Here we also find the 107.91 2012-2018 uptrend. This is strong support for the market and we look for the market to stabilize and again recover from this vicinity. Rallies should find initial resistance at the 110.85 27th November low”.
“Above 110.85 lies the 111.44/50 double Fibonacci retracement, we estimate that the market will struggle to overcome the 200 day ma at 111.60 presently”.