The USDJPY shot higher today and moved above the October and November highs at 109.278 and 109.237 respectively. The run higher took the price toward the underside of a old trendline on the hourly chart and sellers slowed the run higher at 109.482.
The US/China headlines pointing to some disagreement about rolling back tariffs has spooked the stock market and in turn, the USDJPY has moved down in sympathy with the declines.
The USDJPY price has move back below those old highs in the 109.237-278 area and it is looking more like a failed break (see shaded red area).
If so, traders should start to lean against those old high levels, and push back down toward a retest of the 200 day moving average at the 109.01area. Once there, it is another decision for the traders - Go below the 200 day MA and 109.00 level or stay above and battle between 109.00 and 109.238-279 again?