USDJPY:Builds On Corrective Recovery

USDJPY -The pair was seen extending its recovery higher today and holding slightly above its broken support turned resistance standing at the 87.10 in early trading today. With its Monday losses almost wiped out, risk of further upside is seen towards the 88.00 level, its Oct 07'09 low if a convincing close is established above the 87.10. Further out, its Nov 01'09 low at 89.16 comes in as next resistance with a trade above there triggering further price acceleration towards its Nov 12'09 low at 90.60. We remain wary of USDJPY's recovery strength above the 87.10 level until a decisive break and close above there is seen on a daily closing basis. The current price action remains corrective of its overall medium term downtrend now on hold. Its daily stochasticsis supportive of its current strength as it is trending higher. Supports are located at 86.00 level, its psycho level and then the 84.80/45 level, its YTD/July'1995 lows with a breach of there resuming its medium term downtrend towards the 81.77 level, representing its May'1995 low.

width=400