USDJPY: Weakens, Pressures Its Major Support.
USDJPY: With bears remaining firmly in charge, the 75.92 level is now under pressure as that level is now being tested. Note that the pair is still trapped within its established sideways range (77.85 and 75.92). USDJPY has to decisively break and hold below the 75.92 level to resume its long term downtrend towards the 74.00 level. Further down, support stands at the 73.00 level and then the 72.00 level, representing its psycho level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, the pair will have to break and close above the 77.40/85 levels, its Aug 04’2011/falling trendline to put in a bottom and create scope for more gains towards the 80.19 level, its Aug 04’2011 high. Further out, resistance lies at the 81.47 level, its July 08’2011 high and subsequently the 82.21 level. All in all, USDJPY remains biased to the downside in the long term.