USDJPY (113.95): The USDJPY attempted to open on a bullish note yesterday. The yen weakened after comments from BoJ’s Governor Kuroda. Kuroda said that the central bank’s monetary policy was still needed for some time reiterating the central bank’s commitment to fight deflation. Despite the brief rally in the dollar, USDJPY settled to close weaker on the day. Price action still consolidates below the resistance level which increases the risk of a downside correction. The evolving inverse head and shoulders pattern along with the ascending triangle pattern put the bias to the upside. However, USDJPY will need to clear the 114.00 price handle to post further gains.
