USDJPY (111.34): The USDJPY extended the declines as price action fell below the 111.74 support level. The strong declines posted resulted in a doji candlestick on the 4-hour chart. A bullish reversal here could signal a short-term retracement back towards the 111.74 price level where resistance could be established. On the downside, the next main support is seen at the 111.00 level. We expect the declines to continue down towards this support with the potential to briefly break below the 111.00 support level in the short term.
