With continued weakness seeing the pair breaking back into its broken falling channel, further downside pressure is now likely towards the 81.11 level, its Feb 04'2011 low. Below that level will pave the way for more declines towards its 2010/11 lows at 80.90/23. We may see a respite there if tested but if that level gives in, further declines will shape up towards its 1995 low at 79.75. Its daily studies are bearish and pointing lower supporting this view. Alternatively, to reverse its present bearish offensive, USDJPY will have to return above the 83.96 level. This will put it in a position to target the 84.47 level, its Dec 15'2010 high followed by the 85.92 level, its Sept 12'10 high. Price hesitation is expected there but if that level fails and a break above it occurs, we should see further strength targeting its 50 ema at 87.54. All in all, the pair faces further bear threats on the back of its current weakness.
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