The USDJPY moved to the lowest level since July 31 2023 after falling below the end of December low at 140.248. The low price extended to a somewhat random level at 139.570 before rotating back to the upside. That move has now taken the price back above the end of December low at 140.248.
It has also moved back above the 61.8% retracement of the move up from the January 2023 low to the July 2024 high. That level comes in at 140.463.
Finally, the price has also moved above the low price from last Wednesday’s trade. That level comes in at 140.71.
All of those levels are now support for buyers thinking that the disappointment on the break lower today signals a low for the time being. Depending upon your conviction, each level represents a risk-defining level.
If convinced the lows in place I would expect that the 140.248 level would not be broken on any sort of corrective move from this point.
If less convinced, the 140.40 level can be used as a risk focused level.
Sellers had their shot. They missed. Can the buyers continue to probe to the upside? That is what the trading decision is about now.
