Lower trend line on the hourly and 61.8% retracement are downside targets to get below technically
The USDJPY has run lower to start the current week. The fall took the price away from the 200 hour and 200 day MAs at 108.384 and 108.318 respectively and also below the 50% retracement level of the April trading range at 108.141.
On the downside, the pair fell below the 61.8% retracement at 107.85 and also below a lower trend line in the process near the same level. That should have solicited more selling. It did not. The break failed.
It will now take a move back below the 61.8% at 107.85 and then the lower trend line at 107.79 to solicit more selling (that low was also swing lows from April 2 and April 3), and give sellers more confidence.
Should dip buyers continue to hold support, getting back above the 50% retracement 108.141 should solicit more buying with the 200 day moving average at 108.318 and the 200 hour moving average at 108.384 as key topside resistance. Those moving averages were broken on Thursday and Friday last week, but could not close an hourly bar below that level until today.
