Karen Jones, Head of FICC Technical Analysis at Commerzbank, favors buying the dips in the USD/JPY pair.
USD/JPY attention is on the 114.38/82 major resistance. Dips lower should find initial support at the 200-day ma at 111.67 ahead of the base of the cloud at 111.03. We note the TD set up on the intraday charts and 13 counts on the 240-minute chart and will wait and buy the dips.
Where are we wrong? Below the cloud, we remain unable to rule out losses to extend to the 78.6% retracement at 108.90.
Short-Term Trend (1-3 weeks): Approaching the 2015-2017 resistance line.
Long-term trend (1-3 months): Is trying to bottom out but so far remains range bound.