The 103.64 to 103.713 is support target
The USDJPY move higher in the Asian session and buyers had the shot above the 100 and 200 hour moving averages (blue and green lines in the chart below). The high price reached 104.15. That was above the moving averages near the 104.10 level. However momentum could not be sustained and the price starts to rotate lower in the London session.
In the 1st few hours of trading in the North American session, the price has extended to new session lows and move below a swing area near the 103.817 to 103.83 levels. The low price has reached 103.74. On the downside there are a number of swing lows going back to November 18 between 103.64 and 103.713 (see red numbered circles). Yesterday the price was able to extend below those levels on its way to a low of 103.506. That should have turned the tide more to the downside, but buyers stepped in and push the price back higher into the New York session close.
Needless to say, the 103.64 to 103.713 level is a strong floor. Sellers need to push below it and stay below it to keep the downward momentum going.
On the topside, if the 103.83 level does not hold close resistance now, watch the 103.914 area for additional bias clues (38.2% retracement). Stay below keeps the sellers more in control move above could see a swing back toward the moving averages around 104.07 to 104.099 as buyers and sellers continue the battle in the lower half of the recent range.
