USDJPY: Although USDJPY reversed its intra day losses to trade strongly higher on Thursday, we see this as a correction of its decline from the 93.74 -88.12 levels. While the present strength is limited to the 90.35 level, its Feb 24'09 high and its falling channel resistance at 90.98, the pair remains vulnerable to the downside. On continued weakness, USDJPY should target the 87.35 level, its Dec 09'09 low ahead of the 85.85 level, its Nov 30'09 high with a break exposing the 84.80 level, its 2009 low. On the other hand, if further corrective recovery occurs, its Feb 16'10 low at 89.69 should be aimed at where a reversal of roles is expected. Further out, resistance levels are located at its Feb 16'10 high at 90.35 and then its falling channel resistance at 90.98.
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