With USDJPY breaking below the 79.42 level, the risk is for it to decline further. This now sets the stage for a run at the 79.00 level. A decisive cut through here will allow for more weakness towards the 78.18/27 levels. Its daily RSI is bearish and pointing lower support this view. On the other hand, the pair will have to break and hold above the 80.60 level and the 81.77 level to signal that a bottom is in place. This will bring further upside towards the 82.53 level. Its daily RSI has turned higher supporting this view. All in all, as long as USDJPY continues to trade and hold below the 80.60/81.77 levels, its broader risk remains lower.
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