USDJPY: With USDJPY’s inability to return above the 78.18/27 levels seeing it turning lower on Thursday and during Friday trading session, further bearish momentum looks to continue in the new week. This if triggered will set the stage for a run at the 76.57 level, Nov 18’2011 low with a cut through there targeting the 75.57 level, its Oct’2011 low. Further down, support lies at the 74.00 level and then the 73.00 level, all representing its psycho levels. Its daily RSI is bearish and pointing lower supporting this view. Conversely, USDJPY will have to climb back above the 78.18/27 levels to end its present weakness and trigger further strength towards the 79.49 level, its Oct 2011 high. Further out, resistance comes in at the 81.47 level, its July 08’2011 high and subsequently the 82.21 level, its May 24’2011 high. All in all, USDJPY is biased to the downside in the long term as it looks to weaken further in the days ahead.
