The USD/JPY is trading in a sideways range and there is a strong possibility it may continue. It is currently falling within this range and there is a strong possibility that if it breaks below the 76.4% Fibonacci at 78.22 it could fall to the range lows and trend-line at around 77.90. A breach below 77.58 moreover could usher in a new bearish phase with possible sell-off to the 75s. Upside is capped by resistance at 78.72, which would have to be decisively breached for the bulls to regain control.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst