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USDJPY: The pair’s corrective weakness remains in place as it continues to face bear threats. Despite this, USD/JPY is still biased to the upside in the short term.

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For the pair to reverse its current corrective weakness and resume its uptrend, the pair will have to break and hold above the 85.49 level. This will set the stage for a further strength towards its falling channel top at 86.37 where it may see some price hesitations. Further out, a distant resistance at the 89.15 level comes in as the next upside objective.

Alternatively, on continued weakness, the pair will aim at the 81.97 level,  its Mar 18’2011 low with a loss of there targeting the 80.00 level and then its 2011 low at the 76.18 level. Its daily RSI is bearish and pointing lower supporting this view.

Dollar Yen Forecast April 15 2011