USDJPY (110.68): The USDJPY currency pair was seen slowing inching higher as price action was seen testing the resistance level of 110.62 once again. A convincing breakout above this level could trigger further gains to the upside. However, we expect to see price action mostly consolidating near the resistance level. While there is scope for the USDJPY to pull back, this could potentially lead to an evolving inverse head and shoulders pattern that could turn bullish for the currency pair. The support at 109.57 – 109.43 remains a key level of interest in the near term.
