USDJPY: Our outlook on USDJPY remains lower as it closed lower the past the week. Despite its one-day recovery on Friday, its broader bias remains lower with eyes on 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. Its weekly RSI is bearish and pointing lower supporting this view. Conversely, USDJPY will have to climb back above the 78.18/27 levels to end its present 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 as it looks to recapture its key support.
