Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Daily Technical Strategist: USDJPY

USDJPY: Pressured To The Downside.

USDJPY: Having followed through lower today on the back of its past week losses, further corrective risks are now developing towards the 81.97 level. We expect that level to reverse roles as support and turn the pair back up but if snaps, more declines should shape up towards the 81.37 level. Further out, support lies at the 80.00/79.75 levels. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, a break above the 85.49 level must occur to reverse its present downside weakness. If this occurs, the stage will be set for more gains towards the 85.92 level, its Sept 12’10 high. Beyond this level will call for a run at its 50 ema at 87.54. All in all, USDJPY looks to weaken further having retained its corrective tone.