The move comes amid reports that the Bank of Japan will face more pressure to ease at its next meeting. The central bank is under pressure to meet its 1% inflation target, and government officials are under pressure to spur growth. Standard & Poor's has also just hit the newswires saying it has cut Cyprus’ rating to B from BB, and warns that further downgrades are possible.
USD/JPY has traded as high as 78.98 and is poised to record a fifth consecutive day of gains. The 200-day EMA is limiting rallies at this time, a break of which opens scope for a test of offers at 79.20. Immediate support is now noted at 78.26 (Oct 5 high).