USD/JPY stalled yesterday at 78.45 which was the 76.4% retracement of the big rally from 76.30 to 85.60. This has given a little bit of heart to the embattled USD bulls. Last night in early London there was a rumour that the BOJ was in the market, and the pair spiked to 79.60 from 78.70 but it soon returned back below 79.00 when the rumour proved to be just that. The high since then has been 79.25 and we are currently testing that level again.