USDJPY: Bearish, Extends Weakness

USDJPY: The pair remains vulnerable to the downside following its last week losses. A follow through lower is snow underway suggesting further decline with eyes on the 101.50 level a possibility. A cut through here will call for a run at the 101.00 level where a breach will turn attention to the 100.00 level, its big psycho level. We expect a bounce higher off this level if tested. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, resistance resides at the 102.85 level where a violation will turn focus to the 104.50 level and then the 104.00 level. If a violation of here occurs, expect more recovery to follow towards the 104.91 level where a breach will aim at the 105.43 level. On the whole, USDJPY remains exposed to the downside in the short term.