USDJPY: Although USDJPY retains its overall weakness started from the 94.97 level, a hammer print on Tuesday is suggestive of a loss of momentum and an impending corrective recovery. If this view plays out, the initial target will come in at the 90.93 level, its May 19,10 low with a turn above there allowing for more strength towards its May 20'10 high at 91.86 and then the 92.95 level, its May 18'10 high. These key levels should cap further strength if seen thus turn back the pair lower again. On the other hand, if its May 06'10 low at 88.23 and the 88.12 level, its Mar 04'10 low are taken out, further downside pressure should shape up towards its Dec 09'09 low at 87.35 and next its 2010 low at 84.80. Its daily stochasticsis bearish and pointing lower suggesting further downside.
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