USDJPY: The pair remains susceptible to the downside though taking back its intra day losses to close slightly higher on Thursday. Downside threats now exist towards the 90.53 level, its Jun 2010 low and then the 89.25 level, its May 25'10 low. A breather could occur here and turn the pair back up but if that level fails, it should weaken further towards the 88.94 level, its May 20'10 low. Further down, its May 06'10 low at 88.23 comes in as the next downside.

This downside view remains consistent with its short term weakness activated from the 94.97 level. Alternatively, a decisive violation of the 92.87 level is needed for a resumption of its correction to be triggered towards its May 13'10 high at 93.63 and possibly higher towards the 94.97 level, its 2010 high. A cap may be seen at the former level. All in all, having failed at the 92.87 level and continued to look vulnerable, further downside threats are envisaged despite its present bid tone.

 

Support Comment

90.53 Jun 01'10 low

89.25 May 25'10 low

88.23 May6'10 low

Resistance Comment

92.87 Jun 04'10 high

93.63 May 13'10 high

Directional Bias

Nearer Term -Mixed

Short Term -Mixed

Medium Term -Bearish

Performance(%)

Past Week: +0.93%

Past Month: -2.87%

Year To Date -1.57%