USDJPY bounces toward intraday resistance

Technical Analysis

Author: Greg Michalowski | usdjpy

Support at the swing lows from August 31 stalls the fall

The USDJPY has bounced off the first downside target from the earlier post at 105.289. That level corresponded with the low from August 31.  Other targets reached the lows from August 28 at 105.233 and 105.193. Those levels remain key downside targets for the pair.  

Support at the swing lows from August 31 stalls the fall

The bounce off the low has seen the price move up to a swing area at 105.537 to 105.585. The corrective high has reached 105.51.  If the sellers are to remain in control, the staying below that swing area will be eyed.   A move above muddies the water a bit for the move lower.  

As outlined in a post over the weekend, the USDJPY range last week was a small 59 pips. Non trending leads to trending. The range in the first two days of the week has reached 86 pips.   It is not running too hard / too quickly, but if the seller can remain in control, and the price dips below the lows from August 28th, there is further room to roam with the August 19 low at 105.09 as the next target (see daily chart below).  

USDJPY on the daily chart.

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