USDJPY: A strong rally has seen the pair reversed its Thursday losses and opened the door for more gains in the days ahead. This development leaves USDJPY targeting the 89.00 level, its psycho level with a violation of there paving the way for more upside towards the 89.50 level and then the 90.00 level. Further out, resistance resides at the 90.50 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support comes in at the 86.78 level where a reversal of roles is likely to occur and turn the pair back up. However, a cut through here if seen will set the stage for more declines towards the 85.65 level. Further down, support comes in at the 85.00 level. All in all, USDJPY continues to retain its medium term uptrend.
