USDJPY FX - Update.

The USDJPY failed to follow through on the reaction to the downgrade last week, moving pretty swiftly back to the low 82s. As I  like to point out, there are always 2 main directional options (There are 3 actually; up , down , and sideways range, plus the many combination/permutations of these beyond and within that).
The failure to push any higher shows the strength of the overhanging resistance in the 83/84 area, and the strong influence of the down-trend of the past 3 1/2 years.  I still think we may be in a basing phase, but until and unless 83/84 is properly broken on a sustainable basis, with at least a move over 85, further downside is still a distinct possibility. The chart below shows how the price action of the past 3 months may have formed a 'Bearish Triangle' which could target 77/78. The other option is that the pair stays in a continued sideways action for now largely between 81/84 as opposing forces negate each-other.