USDJPY: The pair has rallied through its resistance levels at the 77.29/32 level during Tuesday training session and set the stage for further strength possibly toward its Dec 23’2011 high at the 78.20 level. This new technical development is coming on the back of a consolidation initiated following its declines from the 78.20-76.60 levels. On a continued recovery, further upside momentum will shape up towards the 79.49 level, its Oct 2011 high. This will be followed by the 81.47 level, its July 08’2011 high and subsequently the 82.21 level, its May 24’2011 high. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, on any pullbacks, the 77.29/32 levels will be aimed at where a reversal of roles as support is expected. However, if this fails to occur we could see USDJPY decline further lower towards the 76.60 level and then the 74.00 level ahead of the 73.00 level, all representing its psycho levels. All in all, USDJPY is biased to the upside nearer term on further corrective recovery.
