Tests 50% of the October trading range
The USDJPY fell below the 38.2% retracement of the October trading range at 113.211 on Monday but momentum below the level was modest. The price closed the day right near the level. That level was a low floor since October 12.
Today, after waffling in the first few hours of the Asian session(and finding sellers near 113.279 - the low of a swing area up to 113.396), the price started to rotate back down and found additional selling momentum.
The price trended down below the swing low from October 12 at 112.996 and toward the 50% midpoint at 112.754. The low price reached 112.72, and found dip buyers.
The price has since moved back above the 112.996 level and currently trades at 113.067. The 38.2% retracement at 113.211, with more conservative risk level up at 113.279. stay below that area keeps the sellers more control. Move above and there would probably be disappointment from sellers on the break.
The 50% level was a good hold on the downside. Finding buyers near that level definitely influenced the shorter-term traders and led to a bounce higher. The question now is after getting outside of the red box at confined the pair for number of trading days, will the market be anxious to reenter that "box"?
