Moody's Investor Services warned Japan it was reducing the outlook on the nation's bond rating from stable to negative due to its widening debt load.
The USD/JPY rose following the news and finished the day at 83.35 from an opening day price of 83.20.
Since breaking higher above a triangular consolidation pattern and rising to a high of 84.00, the USD/JPY has fallen to a low yesterday of 82.79. However, a bullish consolidation pattern looks to have formed already.
The recent declines in the USD/JPY have created a bullish flag on the daily chart. An estimate of the move from the chart pattern would suggest an additional 1.00 yen move higher to the resistance level of 84.50. Support for the pair is found in a range near 82.50.