USD / JPY – Is it about to complete the descending triangle at 78

The last six months or so have seen the USD/JPY slowly declining from its March highs around 84. In the last few months it has been forming a descending triangle with a solid support level around the 78 level. Throughout the last month, this has consistently supported the Yen and temporarily halted its steady decline.   Over the last day, the Yen has again traded below the 78 level and is presently trying to fight its way back up.  It has reached its lowest level since 1 June.

During this descending triangle, the peaks have become lower as sellers are enthusiastic to sell at lower prices than previously placing downward pressure on the Yen. (Daily chart below)

USD/JPY Technical

• During the early hours of the Asian trading session on Wednesday, the USD/JPY has been slowly moving its way back up towards the 78 level having broken through there overnight.
• Does the Yen have one final rally left before most likely breaking through the support level at 78?
• The 78.00 level conitnues to offer strong support
• Current range: Staying right around 78.00, but for how long? Will the Yen break down from its descending triangle?

Further levels in both directions:

• Below: 78.00, and 76.00.
• Above: 80.00, and 82.00.

• Should the USD/JPY be able to break down through the support level around 78, then a return back to the congestion level at 76 is possible.