Prices gapped higher in the wake of Japan’s general election and promptly corrected lower, breaking through the 138.2% Fibonacci expansion at 83.97 to target the 123.6%level at 83.45. A further push below that exposes the 100% Fib at 82.61. The 83.97 level has been recast as near-term resistance, with a reversal above that targeting the 150% expansionat 84.39.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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