By Mohammed Isah of

USD-JPY: With a marginally higher close after turning off its intraday high at 87.79 on Tuesday, USD-JPY was been weakening and threatening the 86.96 level, its July 1, 2010 low, in today's trading session. On a violation of the 86.96 level, further weakness should shape up toward the 84.80 level, its 2010 low. This view is consistent with its short-term downtrend started from the 94.97 level in early May 2010.

On the upside, a return above its May 6, 2010 low at 88.23 will have to occur to halt its current weakness and bring more strength toward its violated rising trend line at 89.40, where a cap is likely to turn it back down again. All in all, with a failed recovery triggering downside pressure, threats are seen toward the 86.96 level and even lower.
Mohammed Isah is a technical strategist and head of research at, 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 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 At, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite 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.