USDJPY: Breaks The 90.11 Level, Eyes The 87.10 Level

USDJPY- Loss of price momentum at 92.52 level, its Sept 21'09 high saw the pair reversing all of its past week gains and breaking below its key support residing at the 90.11 level to test a low of 89.50 today. With the continuation of its short term downtrend triggered at the 101.43 level, its 2009 high, USDJPY should weaken further with its Dec'09 and Jan'09 bottoms at 87.10 seen as the next strong targets where a clean invalidation will open the door for further downside towards the 86.00 level and then the 85.00 level. Its daily stochastics has turned lower supporting its present weakness and suggesting further declines. On a recovery higher from its present price levels, USDJPY should retest its just eroded support at the 90.11 level now expected to reverse roles and provide resistance. Above there if it materializes will send the pair further higher targeting the 91.62 level, marking its Sept 23'09 high and next the 92.52 level where its Sept 21'09 high is located. On the whole, with the 90.11 level taken out, the pair is expected to head further to the downside in the days ahead.

Daily Chart: USDJPY