USD/JPY approaching its 14 year resistance line at 122.70 – Commerzbank

FXStreet (Barcelona) - The USD/JPY pair is on its way towards the 14 year resistance at 122.71 levels after it broke the 2005 December high of 121.40, notes Karen Jones, Head of Technical Analysis at Commerzbank.

Key Quotes

“USD/JPY has eroded the 121.40 December 2005 high and is on course to challenge its 14 year downtrend at 122.70. This 122.50/123.00 band represents a major upside objective for us. We are expecting it to hold the initial test. Should the market break through this level we have nothing until the 124.14 2007 high.”

“Support is offered by the Imoku 1 level at 119.55 and this guards 117.25/20 – only below here will trigger losses to 116.11, 11th November high and the 115.72 uptrend.”

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