For first time since early July, US 10 year bond yields, with which the USD/JPY have a very positive correlation, have broken above the 1.6% key rate, and now the 1.7% figure awaits as next big resistance as it was all month of June highs, being the top at 1.72% on June 11. Biggest risk event for Yen will come tomorrow with BoJ monetary policy statement, which could bring volatility to the pair. Yen has been worst performer of majors in last 3 trading days, being EUR/JPY best performer as in relative terms EUR has been best, and JPY has been worst.
Immediate resistance to the upside for USD/JPY shows at clear ask line and past 3 week highs 78.75, followed by May 18/June 29/July 11 lows at 79.00/13, and May 09 lows at 79.43. For the downside, closest support comes at recent session lows and 0.38 Fibo retrace of 78.13/78.73 up leg at 78.50, followed by July 23 highs and 0.5 retrace of same up leg at 78.43, and Monday's lows at 78.13.