USDJPY (111.18): The USDJPY continued to extend it’s declines. Price action weakened after a brief attempt to rally. As a result, USDJPY was seen falling back to retest the support level at 111.00 – 110.88. We expect to see USDJPY consolidating near this level with the potential to briefly dip lower. The bias remains flat at the moment, but further weakness could come in on a break down below this support level. On the upside, USDJPY will need to post gains above the recent local pivot high near 111.30. A close above this level will send USDJPY posting a correction towards 112.04 resistance.
