Lower on the day, but waiting for the next shove
The USDJPY is lower on the day after a run higher found sellers near a upper swing area between 109.42 and 109.48 (the high reached 109.496 and quickly retraced lower).
The move to the downside has seen the price chop to the downside. There have been a lot of ups and downs on the way lower. The price tried to hold support against the 200 hour MA. Eventually broke below that level, but could not extend below a lower channel trendline, the 50% midpoint of the move up from last week’s low on May 11, and a swing area between 109.029 and 109.074 (that area remains a target to get to and through if the sellers are to remain in control).
The price rebound off of that level has taken the price back in between the 100 hour moving average at 109.252 and the 200 hour moving average at 109.123.
Traders will now be looking for the next shove outside of those “goalposts”. The hope is that the next break (above the 100 hour moving average or below the 200 hour moving average) leads to a momentum move in the direction of the break.
On the topside traders will look toward the 109.417 level. On the downside traders will look toward the 109.029 level.