USDJPY: Further Downside Remains On The Cards

USDJPY -The pair continues to maintain its downside pressure closing slightly on a rejection candle on Monday and following through lower in today's trading session. Now trading below the 88.82 level, immediate risk is now seen towards its Monday low at 88.57 with a loss of there allowing the pair to weaken further towards its Oct 07'09 low at 88.00 and then its Jan'09 low at 87.10. Its broader weakness and the fact that USDJPY remains trapped within its falling channel continue to support its present price action. 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. Beyond 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.