The USDJPY has been finding support against the June low at 77.65. A break below is needed in order to probe the downside further (see daily chart above). The 77.34 would be the next downside target followed by 76.53 and the 2012 low from at 76.01.
On the topside today, the price his finding sellers at the 77.94 level which has been a low floor area since June 4th. A move above that level will look toward the underside of the broken trend line at the 78.26 level. Stay below and the bears remain in control. Move above that level and the break to the downside will be a failure.
Looking at the hourly chart (see below), the price has taken two steps down over the last 4 days. The correction off the last step down has the 38.2% retracement at the 77.93 level. This corresponds with the 77.94 resistance from the floor area going back to early June on the daily chart. Move above this level and then the 50% at 78.006 level, and there should be further profit taking higher. The 78.27-32 is a resistance area over the last 7 days and where the 100 and 200 hour MA (blue and green lines in the chart below) are found. This also corresponds with the underside of the trend line on the daily chart at 78.26 currently.
