USDJPY: Recovery Intact Despite Price Hesitation (Daily Technical Strategist)

[FXTechstrategy Team]

USDJPY: Although USDJPY is now seen backing off higher prices, its nearer term outlook remains corrective. Its bullish weekly close the past week is consistent with this view. However, it will have to return above 79.78 level printed on Jun 07’2012 to resume its correction towards the 80.51 level with a cut through there targeting its April 04’2012 high at 81.85. Above here will create further upside scope towards the 82.53 level. On the downside, a return below its key support standing at the 77.66 level will have to occur to reverse its recovery risks and then open the door for a move lower towards the 76.49 level. Below here will expose the 76.00 level. All in all, USDJPY continues to hold on to its recovery risks though susceptible to the downside medium term