Prices gapped higher in the wake of Japan’s general election and promptly corrected lower, breaking through the 61.8% Fibonacci expansion at 136.12 to target the 50% level at 135.26. A further push below that exposes the 38.2% Fib at 134.42. The 136.12 level has been recast as near-term resistance, with a reversal above that aiming for the 76.4% expansion at 137.19.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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