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USDJPY:  Following USDJPY reversal of its intra day losses and its subsequent rise higher to close flat forming long-legged doji on Thursday, threats now exist for the pair to head to the upside with the 99.68 level, its Mar 05’09 initially targeted. Convincingly invalidating that level will leave the USDJPY aiming at the 101.43 level, its April 06’09 high with a turn above there resuming its short term upside initiated at the 87.13 level towards the 102.42 level, its Oct 20’08 high. Further out, the next resistance is located at the 103.07 level, its Oct 14’08 high. This view remains consistent with its short term recovery off the 87.13 zone and its rising channel. On the other hand, reversing its current upside build up could see the pair turning back lower towards the 98.97 level, its Mar 17’09 high ahead of its daily 200&50 emas at 97.63/41 with a violation of that level putting its channel bottom/base at 96.99 under pressure and later the 95.95 level, its Mar 30’09 low. We expect the mentioned major emas or its channel base to provide support if seen. Daily stochastics is still pointing lower supporting this view. On the whole, the short term recovery off the 87.13 zone still remains to the upside as long as USDJPY continues to hold within its rising channel. 

Support Comments
98.97 Mar 17’09 high
97.63/41 Daily emas 
95.95 Mar 30’09 low

Resistance Comments
99.68 Mar 05’09 high
100.50 Nov 04’08 high
101.43 April 06’09

Dailly Chart: USDJPY