USDJPY: Corrective weakness continues to be seen but we still expect the 77.48/45 levels to provide support and turn the pair back up. It is currently being tested and while USDJPY continues to hold above there, risk of a return to the 79.49 level cannot be ruled out. A decisive break and hold above here will call for a run at the 80.19 level, its Aug 04’2011 high. Further out, resistance lies at the 81.47 level, its July 08’2011 high and subsequently the 82.21 level. Alternatively, the risk to our upside view will be a firm break and hold below the 77.48/45 levels, its Oct 12/17’2011 highs .Further down, support stands at the 75.92 level followed by the 74.00 level and then the 73.00 level. All in all, USDJPY is biased to the upside on further recovery baring any price setbacks.
