USDJPY has continued to traded high throughout the Asian and early European trading sessions, with the market now on track to close the gap left on Monday mornings open. If the market can see a solid close above this level further buying is likely, however, there is likely to be a number of technical traders that will also be looking to sell into this level as well as traders taking profits after the recent run higher.
Taking a look at the 5 minute chart there are two major technical levels in this degree to keep a close eye on in the coming sessions. One being the 1:1 (White) and 50 Fibonacci level that coincide at 123.24 and the other the 1:1 (Blue) and 38.2 Fibonacci level that come together at 122.95. The smart money will likely continue to buy into these 1:1 dips until the gap left on Monday morning is closed.
* A 1:1 refers to a current correction being equal in length to a prior correction