USDJPY (110.59): The USDJPY currency pair posted gains, with early Asian trading session seeing the yen weakening sharply. The upside in USDJPY has sent prices to test the resistance level at 110.62. However, further gains can be confirmed only on a breakout above this resistance level. In the near term, we expect USDJPY to maintain a sideways range below this resistance level, with the bias still remaining to the downside. The major trend line is likely to act as dynamic support on the declines with the main level of support at 109.57 – 109.43 likely to hold the declines in the near term.
