Swing area on daily chart stalls the fall
The USDJPY fell to new lows going back to September 2017. The low reached 108.628.
That low stalled in a swing floor area on the daily chart going back to November 2016. That area comes in at 108.60-108.82. The low tested the lower end of that area (see yellow area and the red numbered circles in the chart above) and has seen dip buyers. There has not been a lot of days where the price has traded below that area going back to November 2016. Key support held.
Looking at the hourly chart, the low also stalled at a trend line and has bounced modestly. The low from yesterday comes in at 108.96. The correction off the low has not been able to breach that level (call it 109.00). If the pair is to rebound off the support, getting above that level is the minimum requirement.
Watch the 109.00 level. Stay below, the sellers are more in control. On the downside, the daily and the hourly have support at the same area at 108.60. KEY support. We should continue to see buyers against that level with stops on a break below.
