USD/JPY has so far paused at psychological resistance at 115.00. The pair is currently trading just above 114.00 but it is set to resume its surge higher towards 119.41, the downtrend from 1975, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

USD/JPY is correcting lower

“USD/JPY has so far paused at psychological resistance at 115.00. The divergence of the RSI and yesterday's price action point to further near-term consolidation.”

“ Above 115.00, we have 115.60, the 61.8% retracement of the move down from 2015 and then the 117.56 the 1998-2021 resistance line and the 119.41, the downtrend from 1975.” 

“Nearby support lies 112.73/112.56 then the 111.66 July high, which should hold the downside.”