The pair has halted its two-week declines and triggered a recovery, wiping out its previous week losses on Friday. This technical development now leaves USDJPY targeting additional strength towards the 78.18 level. However, the big challenge will be a test and violation of the 79.49 level, its Oct 2011 high. Above here if seen will bring further strength towards the 81.47 level, its July 08'2011 high and subsequently the 82.21 level, its May 24'2011 high. Its weekly RSI is supportive of this view as it is bullish and pointing higher. On the downside, a return below the 76.57 level is required to end its current upside offensive. Further down, support comes in at the 75.57 level, its Oct'2011 low with a break turning attention to the 74.00 level and then the 73.00 level, all representing its psycho levels. All in all, USDJPY is biased to the downside in long term despite its attempt at recovering higher.
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