Outlook: Exactly as expected, USDJPY rallied to touch its declining 21-day moving average near 88.00 level and then turned back down. As you can see from the chart, the daily trend remains on the downside, and the daily oscillators show room for further weakness. Thus, though the downmove from the early June's top has become a bit choppy recently, the bears should continue to dominate this market. In turn, that means, that the rallies are likely to be sold-off. The next downside target is near 83.80 level from where a larger bounce is likely to develop.
On the upside, a move abv last week's top (88.11) negates, signals a larger rally twd 90.20 is likely under way.
Strategy: Holding short from 88.00 is favorable. Stop=88.00. Target=84.00
