USDJPY – With USDJPY selling off in July and facing further bearishness in early Aug’2012, the risk is for it to decline further. In such a case, the pair will aim at the 77.66 level where a violation will open the door for a move lower towards the 76.01 level. Further down, support lies at its key support located at the 75.92 level, its 2011 low and then the 74.00 level and then the 72.00 level, all representing its psycho levels. Its monthly RSI is bearish and pointing lower suggesting further weakness. On the upside, the pair will have to break and close above the 84.17 level followed by the 85.51 level to put its broader long term downtrend on hold and bring further gains towards its July’2011 high at 86.88. A violation of there will open up further upside risk towards the 88.00 level. All in all, we maintain our bearish bias on the pair in Aug with the risk being a decline towards the 77.66/76.01 levels.
