USDJPY (112.61): The USDJPY continues to consolidate following the strong declines from last week’s FOMC meeting. In the long term, USDJPY remains biased to the downside as price action is expected to eventually decline to 110.70. On the 4-hour chart, USDJPY managed to post a retracement. However, the lower high formed here could potentially signal further downside in price. Support at 112.04 which was briefly tested is expected to be retested once again. A break down below this level could see the USDJPY extending further declines. To the upside, resistance at 113.00 region remains likely to keep a lid on gains.
