USDJPY: The pair is holding on its strength but will have to break and hold above 78.18 level to convince the market it has ended its correction. Until this occurs, there is still risk of a return to the 76.01 level and then the 75.57 level, its Oct’2011 low. A break of that level will pave the way for a run at the 74.00 level and then the 73.00 level, all representing its psycho levels. Conversely, USDJPY will have to climb back above the 78.18/27 levels to reduce its long term bear threats and then trigger its corrective recovery. This will clear the way for a run at the 79.49 level, its Oct 2011 high followed by the 81.47 level, its July 08’2011 high 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 though recovering.
