USDJPY (113.21): USDJPY extended gains for three consecutive days, with Friday’s session briefly rallying to highs of 113.30 before the dollar eased back to settle at 113.08. Price action remains trading within the consolidation pattern on the daily chart, as resistance at 114.07 remains a major hurdle. On the 4-hour chart, the reversal coincides with a medium-term trend line that has held on two past occasions. A continued follow through to the downside could mean that USDJPY could potentially signal declines to 112.04 level of support. The bias shifts to the upside if the currency pair can post a bullish close above the falling trend line.
