With USDJPY reversing almost all of its previous week gains at the end of the week, further price extension is likely to occur in the new week. This will leave the pair targeting the 77.66 level where a violation will open the door for a push lower towards the 76.49 level. Below here if see will turn attention to the 75.57 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the risk is for the pair to reverse its last week losses and then target the 79.74 level. A cut through here will open the door for more upside towards the 80.51 level and subsequently its April 04'2012 high at 81.85. Further out, resistance resides at the 82.53 level. All in all, USDJPY looks to resume its medium term downside.

Weekly