USDJPY–With its recovery off the 80.84 level halted ahead of its falling channel resistance, USDJPY was seen following through lower on its Monday losses today opening up further downside risk initially towards the 91.86 level, its Dec 22’09 high with a turn below there paving the way for a run at its Dec 04’09 high at 90.77 where we expect a reversal of roles to turn the pair higher again. Further down, if the 90.77 level is violated, the 88.30 level, its Dec 14’09 low and the 87.35/10 levels will come in as the next supports. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair requires a clean invalidation of the 93.20 level to resume its recovery towards its falling channel top currently at 93.47 with a break targeting its .50 Fibonacci Retracement(101.43-84.80)/Aug 24’09 high at 95.05/01 followed by its Aug 07’09 high at 97.77.

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