USDJPY-While the pair still holds on to most of recovery gains off the 89.12 level, its Jan 27'10 low, it is now hesitating ahead of its minor resistance at the 91.27 level. USDJPY requires a decisive invalidation of the latter to resume its recovery and then targetits Jan 21'10 high located at 91.86 ahead of the 92.62 level, its channel top. A halt is expected to turn the pair lower on initial retest of the latter. On the other hand, continued hesitation ahead of the mentioned resistance levels will suggest a reversal lower could shape up towards the 89.12 level with a trade below there paving the way for a run at the 88.30 level, its Dec 14'09. Below there will put USDJPY on the path to further declines towards its Dec 09'09 level at 87.35 and then the 85.85 level, its Nov 30'09 high. Further weakness if seen will turn downside pressure towards the 84.80 level, its 2009 low. This view remains valid while the pair trades and maintains within its defined falling channel.

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