USD/JPY has not closed above the 114.55 October 2018 peak. Subsequently, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, looks for profit-taking – a retracement to the uptrend at 113.21 is expected.

Bullish bias while above the 113.21 uptrend

“USD/JPY has still not yet closed above the 114.55 October 2018 high, and we have a number of warning signals intraday. We would allow for a retracement towards 113.21 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 113.21 and this guards 111.66 July high and 110.80 the mid-August high.”