USDJPY moved to a new low back on May 17 today, and in the process dropped below the 50% midpoint of the move up from the March 23 low at 137.355, and tattooed the 200-day moving average at 137.150. The low price reached 137.23 between these two key technical levels.
The subsequent move to the upside has brought the price back above the swing zone near 138.73 and 138.897, and even the broken 38.2% retracement of the same move up from the March 23rd low. This level comes at 139.176. The highest price reached today is 139.154.
The move moved from the high to the low of 138.73 so far. It was at the bottom of the swing zone on the 4 hour chart (see the red numbered circles). The current price is trading at 138.91. If the price is able to move below the level of 138.73, we can see further consolidation in this pair. On the contrary, a return above 139,176 should see more investigation to the upside.
In general, buyers and sellers are now competing between 138.73 and 139.176. We’ll see how this battle is resolved in trading here today. However, some of the bearish momentum has been neutralized in trading this week with key support bouncing off session lows near the 200 day moving average and the 50% retracement level.
USDJPY buyers stop against the major 200D moving average and the 50% midpoint