USDJPY (112.62): The USDJPY posted strong declines yesterday as the U.S. dollar fell to a four day low. On the 4-hour chart, price closed below the support level of 113.00 – 112.90. Any short term retracement will see price retesting this level to establish support. To the downside, USDJPY could be seen pushing lower to test the next support formed at 112.04. Alternately, in the event that USDJPY manages to break past the 113.00 level, we can expect to see the bullish momentum resuming. However, it is unlikely as USDJPY could be seen maintaining a sideways range within 113.00 and 112.04.
