USDJPY: Having halted its corrective weakness at 92.82 on Thursday and presently strengthening in early trading today, upside risk has now turned towards the 94.24 level printed on April 07'10. A cut through there will clear the way for further strength towards the 94.76 level, its 2010 high with a break triggering more up move towards its Aug'09 high at 97.77 and possibly higher. Alternatively, we will reverse our upside view if the 92.82 level is violated, which will suggest further downside towards the 92.13 level, its Feb 19'10 high where a reversal of roles is expected to turn the pair back up again. Overall, having paused in its corrective weakness, higher prices are expected as the pair prepares to retarget the 94.76 level.
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