USDJPY: Continues To Target The 88.82/00 Levels

USDJPY - The pair followed through lower on its previous week losses breaking below the 89.16 level, its Nov 01'09 low and testing a low of 88.63 level before closing at 88.84 on Friday. USDJPY continues to look heavy and weak suggesting that further downside should shape up towards the 88.82 level, its Oct 14'09 high at first with a firm violation of there turning focus to its Oct 07'09 low at 88.00 and then its Jan'09 low at 87.10. The weekly RSI remains supportive of this view as it continues to trend lower. Alternatively, in order to invalidate its present downside vulnerability , USDJPY must first recapture the 91.31 level, its Nov 04'09 high followed by 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.