USD/JPY is eroding the 114.55 2018 high. Nonetheless, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to correct lower in the day ahead.

Bullish bias while above the uptrend at 113.02

“USD/JPY is starting to erode the 114.55 October 2018 high, but we have not yet closed above here and we have a number of warning signals intraday.”

“We would allow for a retracement towards 113.20/02 the short-term uptrend ahead of further strength.”

“Above 114.55 we have 115.60, the 61.8% retracement of the move down from 2015 and then the 117.06 the 1998-2021 resistance line.”

“The market stays bid above the accelerated uptrend at 113.02 and this guards 110.80 the mid-August high.”