Buying the dips in USD/JPY – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested that occasional dips could be regarded as buying opportunities.

Key Quotes

“USD/JPY has eroded the short term down channel, this is more positive. The intraday Elliott wave counts remain neutral and we will attempt to buy the dips. Above last weeks high at 107.01 we would allow for recovery to the 38.2% retracement at 107.90/95, there is scope for the 50% retracement at 108.98. Dips lower will find initial support at the 105.24 2^nd March low”.

“Below 104.56 would introduce scope to 103.22 then 100.69 (Fib retracements). This is not favoured”.