USDJPY Seeks For Direction, Trapped between 77.85 and 75.92 On Consolidation

USDJPY: The pair remains trapped between the 77.85 and 75.92 levels as it continues to consolidate.With its preceding trend down in the long term, we look for the pair to eventually break out its consolidation range to the downside. The major support lies at the 75.92 level, its 2011 low. USDJPY has been weakening since topping out at the 124.13 level in Jun’2007 and with that downtrend remaining intact, a convincing violation of the 75.92 level will set the stage for further weakness 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 weekly RSI is bearish and pointing lower suggesting further weakness. On the upside, the pair will have to break and close above the 77.85/80.19 levels, its Aug 04’2011/Sept 09’2011 highs to end its bear threats and create scope for more gains towards the 81.47 level, its July 08’2011 high and subsequently the 82.21 level. Further resistance resides at the 83.27 level, its April 18’2011 high.

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