Our outlook on USDJPY remains higher as long as it holds above the 78.18/27 levels. With the pair now holding above the 79.49 level, the next upside target resides at the 81.47 level, its July 08'2011 high and subsequently the 82.21 level, its May 24'2011 high. Its daily RSI is bullish and pointing higher suggesting further strength. On the other hand, a break back below the 78.18/27 levels if seen could put on hold its present upside offensive and push the pair back to the 77.35 level, its Feb 14'2012 low and then the 76.01 level. Below here will aim at the 75.57 level, its Oct'2011 low and possibly lower towards the 74.00 level, representing its psycho level. All in all, the pair is biased to the upside in the near term.
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