USDJPY-The pair broke and closed above its long term declining channel on Thursday suggesting risk of further strength towards its 2010 swing high located at the 93.74 level. Our downside weakness call is now on hold with USDJPY's current break out above its resistance. This development has activated our larger bottom forming view highlighted in our monthly and quarterly technical outlooks and should see the pair trade higher towards its .618 Fib Ret(101.43-84.80 decline) at 95.05 on a loss of the 93.74 level. The next upside resides at its Aug 02'09 high at 97.77. Its daily and weekly studies are bullish and pointing higher suggesting further strength. To the downside, its breakout point at 91.46 and the 91.27 level, its Feb 03'10 high will be targeted on any pullbacks from its current price levels. We expect those levels to reverse roles and provide support thus turning the pair back up again. However, if that support zone fails, losses could be seen targeting the 89.69 level, its Feb 16'10 low with a cut through there opening the door for further downside pressure towards the 88.54 level, its Feb 04'10 low and then the 88.30 level, its Dec 14'09. Below there if seen will cause the resumption of its declines from the 93.74 level towards its Dec 09'09 level at 87.35

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