Although USDJPY continues to consolidation, it remains vulnerable to the downside while it holds below the 77.85 level. This leaves downside risk towards the 75.92 level, its 2011 low and beyond. The pair has been under a strong bear pressure since topping out at the 124.13 level in Jun'2007 and with that downtrend remaining intact, a convincing violation of the 75.92 level will set the stage for further weakness towards the 74.00 level. Further down, support stands at the 73.00 level and then the 72.00 level, representing its psycho level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the pair will have to break and close above the 77.85/80.19 levels, its Aug 04'2011/Sept 09'2011 highs to change our bias and reduce its bear threats. This will create scope for further gains towards the 81.47 level, its July 08'2011 high and subsequently the 82.21 level. All in all, USDJPY remains biased to the downside in the long term as it looks to resume that trend.
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