USDJPY (112.25): The USDJPY extended declines for a third consecutive daily session. The lower high formed on the daily chart and the subsequent declines suggest that the downside momentum could push USDJPY towards the 110.70 level of support. Price action remains largely in a consolidation mode within the range of 114.00 – 110.70 region. On the 4-hour chart USDJPY was seen bouncing off the short term support near 112.04. The short term gains could be limited however. In the event that the support at 112.04 breaks, further declines could see USDJPY extending towards the next lower support near 111.61 – 111.57 area.
