USDJPY: Reverse Downside Losses On Bullish Engulfing Pattern.
USDJPY - Having wiped our its previous week declines following a rally off the 88.60 level, its Dec 15'09 low, risk of further upside gains has shifted to its Dec 04'09 high at 90.77. While our broader bias on the pair in the medium term remains lower, continued upside gains through the mentioned level will clear the way for a run at its Nov 04'09 high at 91.31 with a loss of there creating additional strength aiming at the 92.31 level, its Oct 27'09 high. A cap is expected there if seen but if that fails, we could see further upside move towards the 93.85 level where its channel top is located. This view is supported by its weekly stochastics which is bullish and pointing higher suggesting further strength. Supports are situated at the 88.30 level, its Dec 14'09 low and the 88.00 level, its Oct 07'09 low followed by the 87.35/10 levels. Below there will expose the 84.80/45 level, its Nov 26'09/July'1995 lows before the 81.77 level, representing its May'1995 low