With continued weakness seeing the pair breaking the 78.99 level, we are looking for USDJPY to target further downside. This will leave the pair aiming at the 78.18/27 levels. Below here will extend downside pressure towards the 77.00 level. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, the pair will have to break and hold above the 80.60 level and the 81.77 level to signal that a bottom is in place. This will bring further upside towards the 82.53 level. Its daily RSI has turned higher supporting this view. All in all, as long as USDJPY continues to trade and hold below the 80.60/81.77 levels, its broader risk remains lower.
Daily