USDJPY: With USDJPY bearish and following through lower on the back of its past week losses in early trading today, the risk is for more declines to occur towards its Jun 04’2012 low at 77.98. On continued declines below here, its major support located at the 77.66 level will be aimed at where a breach will pave the way for a move further lower towards the 77.00 level. Price hesitation may occur at this level but if this breaks, expect the pair to weaken further towards the 76.49 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the pair will have to break and hold above the 79.78 level, its declining trendline and the 80.59 level to reverse its present bearishness. This should bring gains towards the 81.77 level and possibly the 82.53 level. All in all, USDJPY continues to face further downside risk in the medium term.
