USDJPY: We continue to hold our consolidation plus range view on the pair as it looks for directional moves. Additionally, as long as USDJPY continues to trade below the 78.66 level, the risk is for it to retarget the 77.92 level, its July 23’2012 low. A breach of here will open the door for more weakness towards the 77.66 level where a violation will pave the way for a push further lower towards the 77.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the pair will have to break and hold above the 78.66 level followed by the 79.78 level, its declining trendline to halt downside threats. Further out, resistance lies at the 80.59 level followed by the 81.77 level and then the 82.53 level. All in all, USDJPY continues to face downside risk in the medium term.