FOREX: USDJPY Breaks Below The 80.70 Level

USDJPY: As USDJPY continues to weaken, it has broken below its Mar 23’2011 low at 80.70 in early trading today. This suggests that we could see further weakness targeting the 78.00 level, its psycho level.

Further down, support comes in at the 76.18 level, its 2011 low where a break will resume its long term downtrend towards the 75.00 level. Its daily RSI is bearish and pointing lower supporting this view. The pair also remains trapped within its bearish falling channel, which supports its present bear threats.

On the other hand, a break above and hold above the 85.49 level must occur to terminate its present downside weakness and then bring gains towards 85.92 level, its Sept 12’10 high. Beyond this level will pave the way for a run at its 50 ema at 87.54.