USD / JPY – Technical Analysis

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.  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 hours of the Asian trading session on Friday, the USD/JPY has been continuing its steady decline pushing down towards 78.
• Short term, the 78.50 level has been offering some support and the 78.00 is likely to offer support over the medium term having previously been a strong support level for the last month.
• Current range: Maintaining above 78.00.  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.