The USDJPY made new lows for the day, falling below the 38.2% of the move up from the November 7 low at 118.78 (resistance now). Yesterday, the price quickly fell below the same level and toward the 50% retracement area at 117.84 (low reached 117.928), but it bounced quickly. That memory seems to be fresh in trader’s minds as the current price is back up toward that broken 38.2% retracement. Will the traders remember? It is hard to shake that “I got burned yesterday feeling?” Be cautious.

USDJPY make run to new lows but are traders remembering yesterday's run lower?

USDJPY make run to new lows but are traders remembering yesterday’s run lower?

Looking at the 5 minute chart, the price moved back above the two lows from earlier in the day at the 118.674 level. The 50% of the NY steps lower come in at 118.834. A move above that level now, and I would guess traders holding onto shorts might feel the frustration from the lack of follow through selling on the price action to the new day lows.

Bounce. New lows has led to a quick bounce higher. A move below 118.674 lows  needs to happen soon to keep the sellers interest today.

Bounce. New lows has led to a quick bounce higher. A move below 118.674 lows needs to happen soon to keep the sellers interest today.