Our overall outlook remains bearish as USDJPY looks to decline further towards the 75.92 level, its 2011 low. A clean break below here will open the door for further weakness towards the 74.00 level and the 72.00 level, representing its psycho levels. Its monthly RSI is bearish and pointing lower suggesting further weakness. On the upside, unless its bottom forming scenario seen on the daily and weekly charts materializes, our downside outlook remains intact. The pair will have to break and close above the 80.19 level traded on Aug 04'2011 to put its broader long term weakness on hold and bring further gains towards its July'2011 high at 81.63. A violation of there will open up further upside risk towards the 85.51 level. All in all, we maintain a bearish bias on the pair in Sept with the risk being a break and hold below the 75.92 level.

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