Finds support at the 125.00 level
The USDJPY has followed the greenback lower in trading today.
Technically, the pair on Friday found resistance sellers against the a topside trend line. That trend line connects a number of highs going back to May 5. The high on Friday was able to move just above the December 2002 high price of 125.79. The high for the day came in at 125.84. The combination of the trend line and the 2002 high was enough to cap the pair. Sellers against the level on Friday could define and limit their risk.
The rotation lower today has found support buyers at the 125.00 area (low reached 124.98). The 38.2-50% of the move higher from last weeks low at 123.767 comes in at 124.806-125.05. This area should solicit buyers on dips if they are to remain in control.
The USDJPY has been on a bullish run since breaking higher on May 19 (from 120.00) level. Trends are fast, directional and tend to move farther than traders expect. Technical levels and clues often help the trend continue. The lows from last week (at the 123.76 area) told a bullish story. They held above the prior floor area. They held strong. Now comes the next challenge. The topside trend line has been a level traders have leaned against with sucess. Will the support targets hold and keep the buyers in control?
