USDJPY: With USDJPY decisively violating its key support at the 76.54 level, risk of further declines is very high. This technical development now leaves the pair aiming at the 75.57 level, its Oct 30’2011 low where a break will resume its long term downtrend towards the 74.00 level ahead of the 73.00 level, all representing its psycho levels. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, in order for the pair to restart its bullish strength, it will have to break and hold above the 78.20/27 levels. This will open up further upside towards the 79.49 level, its Oct 2011 high followed by 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 long term which is consistent with its present bear threats.
