The June low at 109.183 remains a risk level for sellers
The USDJPY moved lower today and in the process moved below the June 2021 low at 109.183, AND the swing low from July at 109.06 (PS. the low from yesterday’s trade also stalled at the 109.183 level).
The subsequent low for the day reached to 108.87 before rebounding over the last few hours. Rising stocks help to support the pair (risk on flows). The yields are trading near unchanged on the day. I can’t say that they are helping or a big catalyst for the move back higher.
Nevertheless, the rise has now taken the price to 109.10 and back above the July swing low at 109.06. However, the pair remains below the June low at 109.183.
Sellers from above, or retracement sellers would not want to see the price moved back above the June low/low from yesterday. That would ruin the breaks lower and the likely lead to more buying interest.
Sellers are still in play. The rebound is partially disappointing in that it’s back above the July low. However, holding below the June low and/or back below the July low should give sellers more comfort.