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
|Â Â Sep 5 at 01:45 GMT|
|78.45/46||Â Â H: 78.70||Â Â L: 78.28|
- During the early hours of the Asian trading session on Wednesday, the USD/JPY has moved slightly higher towards 78.50.
- Over the last couple of weeks, the 78.50 level has been offering some support however it is now acting as resistance.
- The 78.00 is very 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, but for how long?Â 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.
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