...but only briefly. First time since November 9th
The USDJPY tumbled in Asia-Pacific trading today. That fall took the price through the 38.2% of the move up from the December 7th low at 116.537. That was the low price back on December 19th and the pair stalled at the level before breaking below.
The fall below took the price to another key target - the 100 bar MA on the 4-hour chart. Why so important. Well, the price had not traded below that MA line since November 9th. The sideways trading since the peak on December 15th has given that slower MA line to catch up to the price. Today they met and traders leaned peeked below but ever so briefly before moving higher. The low reached 116.22 while the 100 bar MA was at 116.27.
The rally off the low has taken the price to a corrective high of 116.87. We are back down testing the 38.2% retracement level again at 116.53 (moving a bit below it as I type). The 100 bar MA is up to 116.337. This is a test to see if what was old support, is reestablished as support again. If not, expect another test of that 100 bar MA. November 9th is a long time a ago. So a break should solicit more selling.