50% retracement at 111.81 remains a key hurdle
The USDJPY moved higher after the US GDP data (higher prices/ weaker growth). The price moved up to a high of 111.714. That eclipsed the 111.578-674 area that has had a number of swing levels going back to early February 2017. However, the price quickly came back down.
Also above is the key 50% retracement of the price decline from the March high. That level comes in at 111.811 (see chart above). This area has stalled the rallies in trading this week. It also stalled the rally in the April 10th week. At the end of March there was a push above the area, and the price pushed up to 112.19, but that break failed.
Drilling to the 5 minute chart, the corrective move off the high has only retraced about 38.2% of the last leg lower. So buyers are trying to keep control (at 111.567). If the price can stay above the 111.52-567 area, that would be more bullish technically for me. A move below and the waters start getting more muddy.
So overall, tough resistance above but support trying to hold (a 50-50 bet from here).
