The USDJPY is rebounding strongly in the European session after trading to the lowest level since February 3 in the early Asian session.
Looking at the hourly chart, the pair fell below a swing area between 114.69 and 114.78 in the early hours of trading in the Asian session. The price stayed below that area for the Asian trading hours, but started to extend back above the swing area in the early European session and has seen increased buying as a result.
The last three or so hours has seen the price now extend back above its 100 hour moving average at 115.048 (blue line in the chart above). The high price has extended to 115.157. That is short of the 38.2% retracement of the move down from the February high at 115.19 and also the downward sloping trendline near that level.
Getting above those technical levels would increase the bullish bias, and have traders looking toward the 200 hour moving average at 115.358 and the 50% midpoint at 115.409 as the next upside targets. Look for a stall near those levels on the first test.
Close risk for buyers now comes in against the 100 hour moving average at 115.048. Move below that level, and the natural support at 115.00, and the the buyers should turnaround and give up on the upside (at least for now).
