200 hour MA, Midpoint of the May range and swing area all gather between 109.029 and 109.074
The USDJPY has had a down and up day today (with more up) the, with the earlier move lower in the Asian session, finding support near the lows from last week at 108.566 and 108.606. The low for the day did dip to 108.553 just below the lowest low, but that break was short lived and the buyers reentered. The pair is working on its 6th up bar over the last 7.
The run higher has moved to a high of 109.047 (nearly 50 pips from the low), and in doing so, moved into a cluster of resistance defined by a swing area between 109.029 and 109.074, the 200 hour MA and 50% midpoint of the May trading range at 109.06. That cluster of resistance is giving buyers some cause for pause (profit-taking). The pair trades below the area at 109.00 currently.
I would expect sellers to lean against the cluster with stops on a move above. Risk can be defined and limited against a number of technical levels. It just makes sense. A move above, would be a different story. That would tilt the bias more to the upside.
On a dip, there should still be intraday buyers ahead of the 100 hour MA currently at 108.88. For longer term bulls, it would now take a move back below that 100 hour MA to hurt the more bullish bias.