USDJPY: Despite USDJPY's back off its medium term low at 84.80 following its acceleration through its strong support at 87.10 level, its Dec'08 low/Jan'09 low(double pattern)in late Nov'09 , its broader bias remains lower medium term. Although USDJPY has recovered strongly off the mentioned low, as shown on the weekly chart, the pair remains trapped in an eight-month declining channel and as long as that remains unbroken, lower level prices are expected in the medium term. With that said, based on its broader MT downtrend, its current upmove remains corrective of that downtrend. The pair has been trapped in falling channels both on the daily and weekly time frames since tumbling off the 101.43 level in April'09 putting it in a bearish short term downtrend culminating in last week's break of its important support zone located at the 87.10 level, its Dec'08 low/Jan'09 low(double pattern). That double pattern served as platform under which the pair rallied to a high of 101.43 in April'09. Despite its corrective recoveries to the 101.43 level and another earlier than that in Aug'08 at 110.67, it maintained its declines off the 124.12 level in Jun'07 within the mentioned channels. Downside objectives are seen at the 87.10 level, its Dec'08 low/Jan'09 low and the 86.00 level ahead of the 8480 level, its Nov 26'09 low and the 84.45 level, its July'1995 low with a loss of the latter aiming at the 81.77 level, representing its May'1995 low. However, with corrective upside now seen above the 87.10 zone, its former double bottom pattern swing lows invalidated on Nov 26'09, the 90.60 level and its Nov 04'09 high at 91.31 should come in as the next upside target with a cut through there creating scope for further upside towards the 92.31 level, its Oct 27'09 high. On the whole, with corrective recovery seen following its declines to a low of 84.80, risk of further upside still remains on the cards though still maintaining its overall medium term downside bias.

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