USDJPY: USDJPY continues to hesitate ahead of its recent high at the 91.07 level printed on Mar 12'10 as it remains trapped within its long term falling channel in place since April'2009. Our broader bias points lower why USDJPY continues to trade within the mentioned channel with weakness expected towards its Mar 01'10 high at 89.47. A clean break through there will sett the stage for further push lower towards its Mar 04'10 low at 88.12 ahead the 87.35 level, its Dec 09'09 low. However, the threats to our analysis will be a break and close above the 91.07 level followed with a decisive violation of its channel resistance at the 91.65 level. Above there will put our downside view on hold and bring further strength towards the 92.13 level, its Feb 19'10 high with a turn above there calling for more gains towards the 93.74 level, its 2010 high. In a nutshell, the pair remains vulnerable to the downside as long as it maintains within its falling channel.
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