USDJPY: Building On Recovery Strength
USDJPY- A higher weekly close is now underway as USDJPY continues to head higher building on its recovery triggered off the 88.00 level. While the pair remains trapped within its declining channel and biased to the downside in the short term, it faces immediate upside risk nearer term as correction continues to build up. That risk should shape up towards its Sept 24'09 low at 92.52 where a cap could be seen turning off the pair again. USDJPY currently enjoys the support of its daily stochastics and RSI which are both pointing higher. On the downside, initial support lies at the 90.44 level, its Oct 12'09 high which is now expected to reverse roles. Below there will bring the 88.82 level, its Oct 14'09 high into focus with a break and close below that level targeting its Oct 07'09 low at 88.00. This level serves as the trigger for the resumption of its short term downtrend currently on hold. On the whole, with the 90.44 level violated, the pair's recovery higher initiated at the 88.00 level now targets additional upside gains.
Daily Chart: USDJPY