USDJPY (112.17): The USDJPY was seen giving up the gains following the minor bounce on Monday. Price action is likely to retest the previous lows which was formed near the support level of 112.04 – 111.74 region. A rebound off this support level will see some upside in USDJPY but the currency pair remains flat. Resistance level at 113.00 remains the main obstacle to the upside which is unlikely to be breached. In the short term, USDJPY could be seen trading flat but the bias to the downside remains strong. A break out below 112.04 – 111.74 could signal further declines down to the 110.74 level of support.
