The comments from BOJ’s Sato has pushed the USDJPY above trend line resistance at the 77.77 level. The high extended to 77.89 so far, but has since come back down to the break out level. Traders will be expecting this level to hold support if the market is believing the headline and implications. The 100 hour MA will also eventually need to be breached in order to take control away from the sellers. That level comes in at 77.98 currently.
Looking at the daily chart, the next key upside target above 77.98, comes in at 78.18-28 where there has been a number of highs and lows going back in time. Ultimately, the 100 day MA at 78.92 (blue line in the chart below) will need to be breached if the bulls are to exert more upside momentum in the pair. Earlier in the month there was a failed break above the key line. The price has not closed above the level since May 22nd 2012.
