The USDJPY has moved back lower as the dollar selling has the pair on the defensive. The price has moved below the 117.93 level which was the high price going back to October 2007, but there is the support trend lines at the 117.68-72 that is approaching and is keeping the action more two-way at these levels.
The correction off the high today (at 118.966) has taken the price down 115 pips. The buy the dip mentality is in full force for this pair and will likely remain so. I still have to respect breaks of key support areas (the aforementioned level at 117.68-72 is important in that there are two levels) but will be mindful that the breaks can fail, or if more important targets are tested, their should be buyers.
USDJPY has trend line support approaching at 117.68-72
Looking at the hourly chart, the 100 hour MA (blue line and the 38.2% are at the 117.01 area currently. Now I do not expect the price to go racing down another 90 pips here today, but over time, those technical tools may come into play if there is more dollar selling. Be aware. Be prepared.
