Lower swing area for the week being tested
The USDJPY moved up to test the high from last week at 104.756 yesterday but found sellers. That selling has intensified over the last few hours after the pair fell below the 100 and 200 hour moving averages (blue and green lines) and then the 50% retracement of the range since November 18 at 104.204. The last 4 hours has seen the price move down from 104.335 to 103.83.
At the lows, the pair is testing the swing lows from last Friday and Monday's trading (see green numbered circles). That area comes between 103.825 and 103.90. A move below that level would have traders targeting the swing lows going back to November 18 between 103.65 and 103.713.
The current level is so far finding modest buyers who are leaning against the lows. If the price is to bounce, getting back above the 104.00 to 104.074 area would be eyed to take some of the steam out of the sellers momentum.
