USDJPY Analysis – August 4, 2012

USDJPY is in downtrend from 80.61. Deeper decline to test 77.66 support could be expected next week, a breakdown below this level will target 76.00 area. Resistance is now at the upper line of the price channel on daily chart, only a clear break above the channel resistance could signal completion of the downtrend.

For long term analysis, USDJPY has formed a cycle top at 84.17 on weekly chart. Pullback to 75.00 area would likely be seen over the next several weeks.

usdjpy daily chart