USDJPY: With the pair resolving from its range to the upside and cutting through its established long term falling channel at 91.49 to test a five-week high today, risk of further up move through the 92.13 level, its Feb 19'10 is likely having tested that level following the mentioned breakout. However, we would like to see the pair maintain its current strength on a daily closing basis today to add to its breakout validity. On a decisive break and hold above the 92.13 level, USDJPY should build further strength towards the 93.74 level, its 2010 high where a breather may be seen, turning the pair back down. Its daily RSI has turned higher supporting this view. Alternatively, on any pullback from its current price level, its break out point seen at 91.49 should reverse roles and provide support. Below there will put the pair back into its falling channel and then target the 91.07 level, its Mar 12'10 high and subsequently the 89.74 level, its Mar 18'10 low. In summary, having broken through its falling channel resistance, threats of further upside are expected.

width=400