USDJPY: The pair still faces a risk of lower prices while it continues to hold below the 92.87 level suggesting that a decline towards the 90.53 level, its Jun 2010 low is likely. This is coming on the heels of its Wednesday losses. On a violation of the 90.53 level, a tone will be set for more weakness towards the 89.25 level, its May 25'10 low. A respite should occur here and turn the pair back up but if that fails,

USDJPY should weaken further towards the 88.94 level, its May 20'10 low and then its May 06'10 low at 88.23. The daily RSI is bearish and pointing lower supporting this view. Alternatively, a decisive violation of the 92.87 level is needed for a resumption of its correction to be triggered towards its May 13'10 high at 93.63 and possibly higher towards the 94.97 level, its 2010 high. A cap may be seen at the former level. All in all, having failed at the 92.87 level and continued to look vulnerable, further downside threats remain.

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