USDJPY:  Recovery Higher Highlights The 93.08 Level

USDJPY- Although USDJPY retains its overall downside outlook started off t he 101.43 level, nearer term recovery higher triggered at the 90.11 level, its Sept 16'09 low following its recent declines now looks to target the 93.08 level, its July 22'09 low. This is coming on the back of its break sharply higher today. We envisage a reversal of roles at the mention level thereby turning the pair lower again but if this fails to occur, we could witness further recovery higher towards its channel resistance at 94.08. Its daily studies are bullish and pointing higher supporting this view. On the other hand, support lies at the 91.63 level, its Sept 15'09 high with a loss of there creating scope for further declines towards the 90.11 level, its Sept 16'09 low. Decisively penetrating the latter will resume its short term declines towards the 89.69 level, its Feb 08'09 low. On the whole, although recovering higher nearer term, its overall short term declines off the 101.43 level remains to the downside as long as it is trapped within its declining channel.

Daily Chart: EURUSD