USDJPY: Risk Builds Towards The 82.80 Level.
USDJPY: Having reversed its intra day losses to close higher on Monday, threats are now building up towards the 82.80 level, its April 27’2011 high. A breach will open up the possibility of further strength with eyes on the 83.27 level, its April 18’2011 high. Further out, resistance lies at the 84.35 level, its falling channel resistance. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, note that USDJPY still retains its broader long term downtrend and the risk to the above view will be a return below the 79.57 level, its May 05’2011 low followed by its psycho level at 78.00 and ultimately the 76.18 level, its 2011 low.