USDJPY (111.05): USDJPY extended declines, touching a 3-week low. The yen strengthened despite the BoJ standing pat on policy and reiterating its commitment to maintain the QE purchases. With USDJPY now completing the measured target objective of 111.08, we expect to see a near-term rebound to the upside. There is, however, the scope of further declines down to 110.80 which will mark the correction to the previous rally.
Still, USDJPY could be seen maintaining the bearish bias. Resistance is seen at 111.78 and only above this level can we expect to see the bullish bias gain confidence. In the near term, USDJPY could stay range bound within 111.78 resistance and 110.08 support.
