USDJPY: Setback Towards The 88.72/00 Levels Seen

USDJPY - The pair was seen hesitating today failing to follow through higher on its Tuesday recovery. That failure could see the pair weaken towards its Nov 17'09 low at 88.72 where a break if seen will drive it further lower towards its Oct 07'09 low at 88.00. Below there will turn attention to its Jan'09 low at 87.10.The daily RSI remains supportive of this view as it is bearish and pointing to the downside. 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.

Daily Chart: USDJPY