USD/JPY: Struggles At Higher Levels

USDJPY: After rallying strongly higher to test its resistance at the 94.76 level, its 2010 high on Monday, the pair is now finding it difficult to hold above its intra day high of 94.97. It has given back those gains as at the time of this analysis. Our bias is for the pair to break and hold above the 94.76 level but if the present hesitation continues, we may see a turn lower gain. Further resistance above the 94.76 level resides at its Aug'09 high at 97.77 and next the 101.43 level, its April'09 high while support starts at the 94.34 level, its April 26'10 high with a loss of there threatening retest of the 92.72 level, its April 22'10 low and next the 91.58 level, its April 19'10 low. We expect a halt here if seen turning the pair higher again. On the whole, USDJPY looks to firmly break above the 94.76 level as long as it holds above the 91.58/92.79 levels.