USDJPY (111.37): USDJPY attempted to reverse the losses with Friday’s price action turning bullish. However, an early Asian trading session shows the price retracing back those gains. We expect to see a higher low being formed near the current levels. This would indicate a short-term correction towards the 112.00 level where resistance could be established. In the event that the USDJPY posts further declines, the lower support near 111.00 will be tested. The declines are likely to be held near this support level initially ahead of a short term correction. Alternately, a decline near 111.00 could see USDJPY falling towards 110.75 level which will mark the decline downwards.
