USDJPY: As long as USDJPY continues to trade below the 78.66 level, the risk is for USDJPY to targets the 77.88 level, its Aug 01’2012 low. A breach of here will open the door for more weakness towards the 77.66 level where a violation will pave the way for a push further lower towards the 77.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the pair will have to break and hold above the 78.66 level followed by the 79.78 level, its declining trendline and the 80.59 level to reverse its bear threats to reverse its bear threats. This if seen will bring additional gains towards the 81.77 level. Further out, resistance stands at the 82.53 level. All in all, USDJPY continues to face downside risk in the medium term.
