USDJPY - A follow through higher on the back of its Wednesday strength has seen the pair challenging its falling channel resistance currently at 93.40 during the US session today. With its Jan 04'10 high at 93.20 level within the vicinity of its falling channel resistance, the pair may face hard time trying to break through there but if that snaps, further upside risk could develop towards its .50 Fibonacci Retracement(101.43-84.80)/Aug 24'09 high at 95.05/01 followed by its Aug 07'09 high at 97.77. Support starts at the 92.09 level initially with a turn below there paving the way for a run towards the 91.21 level, its Jan 05'10 low ahead of its Dec 04'09 high at 90.77 where we expect a reversal of roles to turn the pair higher again. Further down, if the 90.77 level is violated, the 88.30 level, its Dec 14'09 low and the 87.35/10 levels will come in as the next supports. On the whole, USDJPY is now testing the 93.20/40 levels where a sustained invalidation will resume its rally off the 84.80 level and open up further upside gains.
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