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FXstreet.com (Barcelona) - The USD/JPY has continued to wane Tuesday, after a disappointing session yesterday, which failed to regain the 88.00 level or witness any of the strength seen last week. The cross has clearly been one of today's worst performers, stumbling at 87.24 (session low) out of the gates earlier today. At the time of writing, the pair is trading at 87.39/40, incurring a loss of -0.40% during European trading.

Technically speaking, "the fresh weakness cracked strong supports at 87.35 (Fib 38.2% of 85.64/88.40/03 January previous high). Negative hourly structure and 4h indicators are descending from overbought zone, as see potential for further retracement, with loss of 87.22 (overnight's low) to open 87.00 (50% retracement)." notes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.

According to Research Analyst Gareth Berry at UBS, "despite the recent downtrend the USD/JPY has found itself in to start off the week, we still remain bullish on the pair. As the pair could come under correction phase, strong support lies at 86.67. While this holds, the risk is for resumption of a strength and test of 89.19."

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