USDJPY: We continue to see risk to the downside following the pair's sell off through the 89.69 level, its Feb 16'10 low on Thursday. Risk of further downside is now seen towards the 88.54 level, its Feb 04'10 with a decisive break below there targeting the 88.30 level, its Dec 14'09 low and then the 87.35 level, its Dec 09'09 low. Its daily RSI is bearish and pointing lower supporting this view. However, to reverse its current downside threats, a close back above the 92.13 level, its Feb 19'10 high must be established thus paving the way for further upside towards its Jan 11'10 at 92.65 and then the 93.74 level, its 2010 high with a loss of targeting its Aug 02'09 high at 97.77. We retain our downside bias while the pair continues to hold within its long term falling channel.

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