USDJPY (113.03): The USDJPY extended the declines yesterday as price action fell to the 113.00 support level. We expect the consolidation to continue near this support as USDJPY could potentially be seen posting further declines if there is a failure to rally above 113.00. The next main support is seen at 112.04 level which could be tested if the price level of 113.00 turns to resistance. The decline to the 112.04 followed by a move lower towards 111.74 could signal the correction to the downside. However, in order for USDJPY to post a new leg in the rally, price action will need to be supported firmly near 112.04 or near 111.74.
