The USDJPY has come down toward support at the 108.629-79 area. This is the 38.2-50% of the last trend move higher. The high going back to October 8, is also in this area at the 108.74 level. The low for the day (reached in the Asian session) was at the 108.74 level as well.
If the buyers are to remain in control, this area is where we should look for them to show up and keep the price supported. If they don’t love it, they won’t and we should see a further move toward the trend line (see chart) and 100 hour MA (blue line). Risk can be defined and limited in this current support area.
On the topside, the price tried on two separate occasions to get and stay above the 109.22 level which was the high from October 7th (and the next logical upside target above 108.74). Both moves were quickly rejected. Should the price rebound back toward this high area, you can be sure traders will be cautiously bullish looking for a break (above 109.22) that sticks.
USDJPY is testing support area after failing to keep the drive for 110.00 going.
