USDJPY: A sharp recovery saw the pair closing higher on Tuesday but it continues to hold its downside vulnerability. Unless we see a return above its key resistance at the 84.17 level, the risk is for USDJPY to return to the 81.86/55 levels. We may see price hesitation or even a reversal of roles as support occurring here thus turning the pair higher. However, if these levels fail to hold, further weakness should build up towards the 80.57 level where a breach will target the 78.18/27 levels. On the upside, a return above the 84.17 level is required to resume its upside towards the 85.49 level and then the 86.88 level. All in all, as long as USDJPY continues to trade and hold below the 84.17 level, there is risk of a consolidation with downside bias.
