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Forex pairs in this Article » USD/JPY (Barcelona) - Yesterday's inside day may signal a drop to its 240 minute cloud (currently at 92.20), according to Commerzbank analysts. "The intraday Elliott wave count is indicating a deeper retracement to 91.40 and possibly 89.55 is likely prior to another leg higher", wrote analyst Karen Jones, also noting that the daily RSI has not confirmed the new high and the 13 count on the weekly chart - both suggest a retracement.

Having already met its target of 93.32/96 (38.2% retracement of the move down from 2007), Commerzbank analysts are wary of a sell off towards trend line supports. "Overhead we have the 2010 high at 94.99 then the March 2009 spike low at 95.77. The TD resistance is 95.62", they said. On the downside, support is at the 20 day ma, at 91.61, and the 2 month up channel at 90.84, while above here the market will remain immediately bid.
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