USDJPY: With the pair starting the week vulnerable and weak, the risk is for its present declines to extend. In such a case, its May 23’2012 low at 79.20 level will be targeted where a violation will call for a move lower towards its May 2012 low at 78.99 level. Further downside, its key support at the 78.18/27 levels will come in as the next downside objective followed by the 77.35 level, its Feb 14’2012 low. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the pair will have to break and hold above the 80.14/50 levels to have a chance to develop a temporary bottom. This if seen could see USDJPY threatening further upside towards its April 04’2012 high at 81.85 with a breach of here bringing further gains towards the 82.53 level. All in all, with its broader downside bias intact, the risk remains to the downside.
