USD-JPY Weakens, Pressures Major Support

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 ( - With bears remaining firmly in charge, USD-JPY reached 75.92 and is now under pressure as that level is being tested.

Note that the pair is still trapped within its established sideways range (77.85 to 75.92). USD-JPY has to decisively break and hold below the 75.92 level to resume its long-term downtrend toward 74.00. Further down, support stands at the 73.00 level and then the 72.00 level, representing its psycho level. Its daily RSI is bearish and pointing lower suggesting further weakness.

On the upside, the pair will have to break and close above the 77.40 to 77.85 levels, its falling trendline to put in a bottom and create scope for more gains toward the Aug. 4 high of 80.19. Further out, resistance lies at the July 8 high of 81.47 and subsequently the 82.21 level.

All in all, USD-JPY remains biased to the downside in the long term.

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.