Daily Technical Strategist - USDJPY

[FXTechstrategy Team]

USDJPY: Weakens, All Eyes On Its Key Support

USDJPY: The pair continues to weaken selling off strongly on Tuesday and setting the stage for further decline towards its key support at the 80.57 level. A decisive break of here will open the door for more weakness towards the 80.00 level, its psycho level/Feb 28’2012 low. Further down, support lies at the 78.18/27 levels and possibly lower. Its daily RSI is bearish and pointing lower supporting this view. On the upside, USDJPY will have to break and hold above the 84.17 level to annul its present weakness and then resume its medium term uptrend now on hold. This will open the door for a run at the 85.49 level and then the 86.88 level. All in all, as long as USDJPY continues to trade and hold below the 84.17 level, there is risk of further downside risks.