Rally stalls near the 38.2% retracement level.
The USDJPY has seen prices rise over the last 3 days. After bottoming near the 2017 low (got within 12 pips of the April 2017 low), the pair has been cracking through technical levels.
Looking at the hourly chart above, the pair move through trend lines, the 100 and 200 hour MAs (blue and green lines). Yesterday, after early day consolidation arounnd the 100 bar MA on the 4-hour chart (blue step line), the price peaked at the 200 bar MA on the 4-hour chart (green step line). Today, the price action has found a ceiling at the 38.2% of the move down from the July high (see daily chart below). The correction off that high is now re-testing the 200 bar MA on the 4-hour at 110.367. Key intraday test.
A move below that level will look toward the 110.10 to 110.23 area (see daily chart below). That area was a swing area going back to November 2016. Admittedly, the level has not been much of a technical level this month, but today's low did stall near that level in the early Asian session. Getting back below 110.00 would be more bearish too.
Stocks opening.
