USDJPY: Unless we see a return above the 83.37 level and the 84.17 level, the risk is for USDJPY to continue to weaken in the days ahead. This is coming on the back of a strong sell off the past week and with a continuation of that weakness underway, the pair is eyeing further declines towards the 81.08, its Mar 08’2012 low. A violation will call for a push lower towards the 80.57 level. Further down, support stands at the 78.18/27 levels. Its weekly RSI is bearish and pointing lower suggesting further declines. On the upside, a return above the 83.37 level and the 84.17 level is required to resume its upside towards the 85.49 level and then the 86.88 level. All in all, USDJPY continues to face bear threats as it looks to extend its bear pressure.
