Swing area stalls the fall
The USDJPY has seen a move down and back up today. The pair is still off the highs but is back positive on the day.
Looking at the hourly chart, the early Asian session high stalled ahead of the high from Friday. The subsequent move to the downside, saw the pair moved back toward key support at 109.356. That level was the old high going back to March 15. Recall on Friday, the USDJPY move outside the “red box” that has confined the pair in a 103 pip trading range over the last 14 trading days (thats narrow). Breaking to the upside, gave the buyers more control. The correction to the low today at 109.367 – just above that break point. Buyers leaned and have now pushed the price back to a NY session high at 109.74. The buyers remained in control. The level’s importance increased on the successful test.
On the topside, taking a broader look at the daily chartbelow, shows the swing high from June 2020 at 109.856 as the next target to get to and through. On Friday, the high reached 109.843, about a pip or so from that high. Sellers leaned.
If the buyers are to take more control, getting above that swing high will be eyed.
PS, The low today, not only had support at the March highs but also vs the April 2020 swing high at 109.391. The low today was just below that level at 109.367. Just another reason to make that area an important support level. Be aware.