The bulls took control on Monday rallying through its key resistance at the 77.40/85 levels, its Aug 04'2011/falling trendline to test a high of 79.49. This development has brought USDJPY out of its consolidation zone and opened the door for further upside towards the 80.19 level, its Aug 04'2011 high. Further out, resistance lies at the 81.47 level, its July 08'2011 high and subsequently the 82.21 level. This view remains valid while the pair hold above its key support levels at 77.40/55. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, the risk to our upside view will be a return below the 77.40/85 levels, its Aug 04'2011/falling trendline. Further down, support stands at the 75.92 level followed by the 74.00 level and then the 73.00 level. All in all, USDJPY is now biased to the upside on further recovery baring any price setbacks

Daily