Seller keeping a lid on the pair
The USDJPY tumbled in trading today on the back of BOJ Kuroda's comments that further declines in the JPY was unlikely. As a result the JPY is leading the league tables of the major currency pairs - rising against all.
Looking at the 4 hour chart, the price action pushed the price quickly below the 123.58 to the 123.746 support floor, the 38.2% retracement at 123.183 level and the 100 bar moving average on the four-hour chart as well (blue line in the chart below currently at 123.18 as well). The pairs decline did stall just above the 122.36 level which is the 50% of the move up from the May 13 low. From this chart, I would now expect to see sellers on rallies toward the 123.18-27 area (risk area for shorts now). A move below the 122. 36 should solicit more selling pressure.
The hourly chart has the 38.2% of the move down today at the 123.27. The corrective high off the low today moved briefly above this level, but rotated back down quickly. This solidifies that area as a risk defining ceiling going forward. .
The USDJPY prior to the surge higher (the price high extended above Dec 2002 highs at the 125.79 - the high reached 125.84 just 5 pips above that level) consolidated between 118.40 to 120.84 before breaking out on May 22nd. This may be a target to shoot for if the bears can keep the pair under the topside resistance cited above. Other target levels would be 122.01 (the March high), 121.83 (the December 2014 high), and 121.539 (61.8% of the move up),