USDJPY – While USDJPY continues to look for a bottom, its overall long-term bearishness remains intact. Its positive monthly close in Jan'2011 was met with a failed rally at the 83.98 level to close Feb'2011 lower. This development leaves the pair putting pressure on the downside towards the 80.23 level, its 2010 low with a violation of that level putting the pair in a position to weaken further towards the 79.75 level, its April, 1995 low. Below that level if seen will set the stage for more downside towards the 78.00 and then the 76.00. However, in order for the pair to put its present downside vulnerability on hold, a break and hold above its Oct 2010 high at 84.47 must be established. This will pave the way for a retarget of the 85.92 level, its Sept 12'10 high and then the 87.57 level, its falling channel top. Over all, USDJPY remains biased to the downside long-term though struggling to trace out a bottom.above the 1.0253 level and beyond.
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