The pair is now displaying bottom forming signals as it is seen recovering higher. Except a follow-through higher occurs, we could see the pair returning below the 76.67 level, its Nov 18'2011 low.If this occurs, the pair will push further lower towards its year-to-date low at 75.57 level. USDJPY has been under pressure since turning off lower off the 79.49 level in late Oct'2011. A decisive clearance of the 75.57 level will call for a further move lower towards the 74.00 level and subsequently the 73.00 level, all representing psycho levels. Alternatively, the pair will have to break and hold above the 79.49 level to reverse its broader bear threats and bring gains towards the 81.47 level, its July 08'2011 high and subsequently the 82.21 level, its May 24'2011 high. All in all, USDJPY is biased to the downside medium term though seen trying to recover higher.

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