NEW YORK (
) -- USDJPY: Having closed lower the past week and continued to remain vulnerable to the downside, risk of further declines is likely to head toward the 82.86 level, its YTD low. A violation of there will resume its medium-term weakness and open the door for more weakness toward the 82.00 level, its psycho level, and then the 81.00 level.
We believe the pair should weaken even further toward its major support standing at its 1995 low at 79.75 on a violation of the 82.00 level. Conversely, above the 85.92 level must be traded to reverse its current downside pressure and bring gains toward the 86.87 level. A clearance of there will turn attention to the 88.11 level and then the 89.30 level.
Its weekly RSI is bullish and pointing higher, supporting this view. All in all, USDJPY remains biased to the downside in the medium term.
--Written by Mohammad Isah.
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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.