USDJPY (109.78): USDJPY fell sharply yesterday to mark a 4-month low at 108.26. The greenback managed to recover as the currency pair closed bullish on the day. Further near-term gains can be expected if the momentum to the upside continues. Price action is seen breaking past the second falling trend line. In the near term, we cannot rule out another dip to the support level at 109.15. However, the bullish momentum can be expected only on a breakout above the resistance level that was established at 110.72. The breakout is also marked be the descending triangle pattern that is seen suggesting some near term upside to 110.72.
