USDJPY (110.76): The USDJPY continues to hover around the 110.70 level of support. The strong bullish close last week near this level and the short term dip indicates a temporary base being formed. On the 4-hour chart, minor resistance is seen at 111.00 – 110.88 region. USDJPY will need to close above this level in order to target 111.61 resistance level. To the downside, if the resistance holds the gains, we could expect USDJPY to move back into its previous range. A break below the previous lower support at 110.40 will be key but this level could hold the declines in the short term.
:%20The%20USDJPY%20continues%20to%20hover%20around%20the%20110.70%20level%20of%20support.%20The%20strong%20bullish%20close%20last%20week%20near%20this%20level%20and%20the%20short%20term%20dip%20indicates%20a%20temporary%20base%20being%20formed.%20On%20the%204-hour%20chart,%20minor%20resistance%20is%20seen%20at%20111.00%20-%20110.88%20region.%20USDJPY%20will%20need%20to%20close%20above%20this%20level%20in%20order%20to%20target%20111.61%20resistance%20level.%20To%20the%20downside,%20if%20the%20resistance%20holds%20the%20gains,%20we%20could%20expect%20USDJPY%20to%20move%20back%20into%20its%20previous%20range.%20A%20break%20below%20the%20previous%20lower%20support%20at%20110.40%20will%20be%20key%20but%20this%20level%20could%20hold%20the%20declines%20in%20the%20short%20term.){kind=link}