Another big break for USDJPY came at 110.00 and we've come back to test it
The overnight break through 110.00 looked very much like the same thing we saw at 107.00. It wasn't as clean and swift as that but once it found support after the break, that was all the confirmation buyers needed.
USDJPY 15m chart
I was just about to type that 110.00 looks to be holding as support but we've just gone through it. Next support is down at 109.75, which is pretty close now.
The one thing to remember with steep and sharp moves, is that the longer they go on, the greater risk that we see reversals equally sharp and volatile. Given we're up nearly 1000 pips in the space of just over a week, we're in that territory right now.
Buyers may be loving this but the also need to make sure they cover their backs so they don't go giving a lot of it back.
I'm still not sure this is yet the time to fight this but the PA will be key. If we test and hold 111.00 again, the greater confidence I'll have that we might be nearing a top.
