USDJPY: Further Downside Expected.
USDJPY- Although the pair continues to hesitate trading flat on Monday, as long as it holds below its Nov 04'09 high and trades within its falling channel, we retain our bearish short term view on USDJPY. In such a case, the 88.82 level, its Oct 14'09 and its Oct 07'09 low at 88.00 are seen as the next downside objectives with a loss of the latter putting the pair on the path towards its Jan'09 low at 87.10. Its weekly and daily stochastics continue to validate this view as they are pointing lower. To avert this risk, the pair must break above the 91.31 level and then its channel resistance at 92.01. Further out, the 92.27 level, its Oct 27'09 high comes in as the next upside. On the whole, while USDJPY remains trapped in its falling channel, odds remain for downside weakness to be seen
Daily Chart: USDJPY