Although USDJPY is recovering, as long as the pair holds below its April 04'2012 high at 81.85, risk remains lower. However, if a break and hold above there occurs, the pair should push further higher towards the 82.53 level. Alternatively, the pair continues to retain its short term downside bias and while holding below the 81.85 level, the risk is for it to decline towards the 80.29 level. Below here will aim the 80.00 level, its psycho level/Feb 28'2012 low. Further down, support lies at the 78.18/27 levels and possibly lower. All in all, as long as USDJPY continues to hold below the 84.17 level, there is risk of further declines.

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