USD/JPY has again retested the 23.6% retracement at 113.38. Attention is on Fibonacci support at 112.56, however, Karen Jones, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, views this only as a correction lower and expects the pair to lurch higher towards 114.55. 

USD/JPY may retrace towards the 111.66 July high

“The risk has increased for a deeper sell-off to 112.56, the 38.2% retracement, and potentially the 111.66 July high. This is viewed as a correction lower only and scope remains to for a reattempt on the 114.55/69 highs.”

“Above 114.55/69 we have 115.60, the 61.8% retracement of the move down from 2015 and then the 117.06 the 1998-2021 resistance line.”