USDJPY (112.49): The U.S. dollar rose to a one-month high yesterday but price closed bearish towards the end of day. Failure to maintain the gains saw USDJPY reversing gains below the 113.00 handle. We expect the near term declines to push USDJPY back towards the 112.04 level of support. The unfilled gap from Friday’s close also resides close to this level which validates this view. Alternately, if the bullish momentum resumes, we could expect USDJPY to test the 113.00 resistance level on a convincing close above 112.65 level of minor support and resistance.
