The pair broke resistance of 78.687 on Tuesday August 14, 2012 on the 4 hour time frame, signified by a strong bullish close above that level. Since July 24, 2012, the pair has been consolidating between resistance and support levels of 78.687 and the 78.151 region with a test of the 77.904 level throughout that period.
Upon breaking resistance level of 78.687, the pair retested the level and continued its move in the upward direction.
Strong signals from the 20 and 50 period exponential moving average confirms the upward move, as the 20 and 50 are now in a trending position. The ichimoku cloud has also begun its ascent, as it projects future support for the pair on its upward move.
The pair now rests on major resistance levels on the daily chart and a break of this level will project further resistance at the 80.315 level. The USDJPY reached this high on the 22nd of June of this year, after which a sell of of the pair took place.
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