USDJPY (113.92): The USDJPY was seen closing on a bullish note for the second consecutive day. Price action was pushed back to the resistance level of 114.00 price level. The longer term consolidation remains in play, and we expect to see a potential correction in the near term. However, watch for a breakout above the 114.00 level which could indicate further gains in the currency pair. To the downside, price action is supported near the short-term price level of 112.80. On the 4-hour chart, we expect to see a potential inverse head and shoulders continuation pattern taking shape. Near-term declines could be limited to 113.51. A successful reversal at this level could indicate a move to the upside, above 114.25.
