Prices gapped higher in the wake of Japan’s general election and are now correcting lower, testing below the 61.8% Fibonacci expansion (110.68). A confirmed break below that targets the 50% level at 109.77. Near-term resistance is at 111.42, the March 21 swing high.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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