USDJPY: With USDJPY’s inability to hold above the 77.52 level seeing it weakening on Friday and Monday, the risk of further declines cannot be ruled out. Unless the pair breaks and holds above 78.18/27 levels, it faces the risk of a return to the 75.57 level, its Oct’2011 low. Below here if seen will target the 74.00 level and then the 73.00 level, all representing its psycho levels. Its daily RSI is turning lower supporting this view. Alternatively, on an eventual return above the 78.18/27 levels, the 79.49 level, its Oct 2011 high will be targeted. Further out, the 81.47 level, its July 08’2011 high will come in as the next upside and subsequently the 82.21 level, its May 24’2011 high. All in all, the pair is biased to the downside in the long term despite its present upside offensive.
