Forex technical analysis: USDJPY tests trend line and 61.8% retracement February 27, 2015
The USDJPY has pushed to new day highs as the last hour of London trading begins. The move has run into the 61.8% retracement of the move down from the February 11 high to the February 17 level. That level comes in at 119.606. The topside trend line connecting the most recent highs is also right at that level.
As a result, we are seeing sellers lean against the risk defining level in hopes that the resistance holds, and the market price rotates back down toward the 119.343 - 40 area (50% retracement and prior swing highs - look for support there traders).
A move above the 119.61 level should solicit stops and additional buying momentum.
*** Remember it is week and month end. As a result, there could be increased volatility and choppy trading.
