USD / JPY – Under lots of pressure to finally break through the key 78 level

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.  A couple of weeks ago, the Yen traded below the 78 although very quickly was bought at those levels as it surged back above 78 up to 79.  In falling down through the 78 level, it reached its lowest level since 1 June.

During this descending triangle over the last few months, the peaks have become lower as sellers are enthusiastic to sell at lower prices than previously placing downward pressure on the Yen. Over the last week, the Yen has rolled over and been sold off as it has again fallen down through the key 78 level.  On recent price action, some would expect a flurry of buyers to enter the market as it approaches 77 just like they did two weeks ago.  When will the dam wall eventually break?    (Daily chart below)

USD/JPY Technical

• During the early hours of the Asian trading session on Wednesday, the USD/JPY has been consolidating after attempting to climb back towards 78.
• Does the Yen have one final rally left before most likely breaking through the support level at 78?
• The 78.00 level amd the area just below conitnues to offer strong support
• Current range: Staying just below 78.00, but for how long?   Will the Yen break down from its descending triangle?

Further levels in both directions:

• Below: 78.00, 77.00 and 76.00.
• Above: 79.00, 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.