USDJPY- Although USDJPY reversed its intra day losses to close higher on Thursday, while holding below the 91.31 level and within its falling channel, threats remain to the downside. With weakness currently seen, lower prices should develop towards the 90.06 and the 89.97 levels  with a clearance of there targeting the 88.82 level, its Oct 14'09 high where a penetration will put USDJPY in position to head further lower towards its Oct 07'09 low at 88.00. This level serves as a trigger for its ST downtrend resumption. To avert this risk, the pair must break above its Wednesday high at 91.31 level and then towards its Oct 30'09 high at 91.51. Further out, its channel resistance currently at 92.13 comes in as the next upside where a cap is expected if tested. On the whole, though recovering , it is still vulnerable to the downside in the short term.

Daily Chart: USDJPY