USDJPY: The pair is now following through higher on its Friday strength but will have to decisively break and hold above its medium term falling trendline and the 77.85 level, its Aug 04’2011 to prevent a reversal of its recovery gains. Above the 77.85 level will expose the 80.19 level, its Sept 09’2011 high where a breach will create scope for more gains towards the 81.47 level, its July 08’2011 high and subsequently the 82.21 level. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, the major barrier lies at the 75.92 level, its 2011 low with a cut through here resuming its long term downtrend and setting the stage for further weakness towards the 74.00 level. Further down, support stands at the 73.00 level and then the 72.00 level, representing its psycho level. All in all, USDJPY remains biased to the downside in the long term though attempting to recover.
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