USDJPY (111.48): The strong declines in the Japanese yen stalled after price action closed with a doji candlestick pattern on the daily chart. This indicates a near term correction in price. However, there is equally the risk of price extending the declines on a close below the doji’s low. In the short term, we expect to see a higher low being formed, which will confirm the upside correction towards 112.00 level. This previously served as support but, following the breakdown below this level, we now expect to see 112.00 turn to resistance. To the downside, the lower support at 111.00 remains in sight. The bias changes only on a strong close above 112.00 level, in which case USDJPY can be seen targeting 113.00.
