105.50 is up to the task of holding up USDJPY
There's some good longer term indicators sitting around these parts and for now they're doing their job.
USDJPY monthly chart
The first is the 200 mma at 105.76. The next is the 200 wma at 105.07. In between there we have support from the 29 Dec 2013 highs at 105.45/50. It's not surprise to see all that support holding out. I just wish I had seen it sooner. The dollar is taking back some of the losses and has now looks like it's broken properly back into 106.00.
106.20/30 is where we face resistance, then 106.45/50.
The drop from 112 has been near vertical and the 38.2 fib of that move is way up at 108 and change.
USDJPY H1 chart
107.00 will be a tough nut, and 107.40 will be even tougher.
I have the constant niggling sensation at the back of my mind that all these moves lack any real substance or definition. If we were getting these moves because the Fed or BOJ were shifting their focus entirely then I could understand it. It just feels that most of the market is just getting the hump because the CB's aren't delivering what traders want. When I feel like that I tend to limit the length of time I hold trades for as I feel I'm dealing with unsteady minds.