USDJPY: Eyes The 89.16/88.82 Levels
USDJPY - The pair remains heavy and weak having closed lower the past week .It continues to retain its shorter term negative outlook and looks for further downside pressure towards its nearby support at its Nov 01'09 low at 89.16 followed by the 88.82 level, its Oct 14'09 high and then its Oct 07'09 low at 88.00. Decisively violating the latter will put USDJPY on the path to further downside towards its Jan'09 low at 87.10. The weekly RSI remains supportive of this view. Alternatively, in order to reverse its present downside vulnerability, USDJPY must first recapture the 91.31 level, its Nov 04'09 high followed with the 92.27 level, its Oct 27'09 high. Above the latter will clear the way for a run at its Sept 07'09 high at 93.29. We retain our short term bearish view on this pair and see any recovery higher as corrective of that trend.