Not a pretty picture, but...
My focus on the USDJPY is on the daily and the hourly charts. This is why.
Looking at the daily chart, the price has extended lower over the last two trading days and extended the months trading range below the June lows at 122.41 and 122.45. Yesterday and today that wander lower also took the pair below the 50% retracement of the move up from the April 30 low June 5 high. That level comes in at 122.167. In today's trading, the pair also broke below the swing high price from March at 122.019, but could not make it to the swing high from December at 121.838. So there was dip buyers against these obvious target levels.
Looking at the hourly chart, there were a number of swing lows in early to mid June ain the 122.42-58 area. The last few days have chopped above and below that area with the Greece/stock market volatility a contributor of course. However, today's trade has been able to find sellers near the top of that yellow area. Is the sellers showing a hand? It seems so. If they are to make a play for lower levels, they will need to keep below this level and get below the aforementioned levels on the daily chart at the 122.019 and 121.838. Does the pair have the power to do it? Or is this look and test of 122.00 area just a little wander on a flight to safety? We are in the middle of the range, so risk for traders is the extremes. Patient traders can wait for the extremes outlined and deal on your terms with risk defined and limited.
