Prices gapped higher in the wake of Japan’s general election and are now correcting lower, testing through the 61.8% Fibonacci expansion at 136.12 to target the 50% level at 135.26. A break below that exposes the 38.2% Fib at 134.42. Near-term resistance is at 137.19, the 76.4% expansion.

Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE
New to FX? Watch this Video. For live market updates, visit the Real Time News Feed