USD/JPY continues to hesitate ahead of its recent high at the 91.07 level printed on March 12 as it remains trapped within its long-term falling channel in place since April 2009. For a chart of USD/JPY, click here. Our broader bias points lower why USD/JPY continues to trade within the channel with weakness expected towards its March 1 high at 89.47. A clean break through there will set the stage for a further push lower towards its March 4 low at 88.12 ahead the 87.35 level, its Dec. 9, 2009 low. However, the threats to our analysis will be a break and close above the 91.07 level followed with a decisive violation of its channel resistance at the 91.65 level. Above there will put our downside view on hold and bring further strength towards the 92.13 level, its Feb. 19 high with a turn above there calling for more gains towards the 93.74 level, its 2010 high. In a nutshell, the pair remains vulnerable to the downside as long as it maintains within its falling channel.