The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK ( fxtechstrategy.com) -- A sharp recovery saw USD-JPY closing higher on Tuesday but it continues to hold its downside vulnerability. Unless we see a return above its key resistance at the 84.17 level, the risk is for USD-JPY to return to the 81.86-to-81.55 levels.
We may see price hesitation or even a reversal of roles, turning resistance into support here and thus turning the pair higher. However, if these levels fail to hold, further weakness should build up toward the 80.57 level where a breach will target the 78.18 area.Follow TheStreet on Twitter and become a fan on Facebook. On the upside, a return above the 84.17 level is required to resume its upside toward the 85.49 level and then the 86.88 level. All in all, as long as USD-JPY continues to trade and hold below the 84.17 level, there is risk of a consolidation with downside bias.