The price trades around the 61.8% retracement after backing off the highs
The USDJPY has seen a lot of ups and downs in trading today.
The earlier Asian session high reached up to 106.428. That was near swing highs going back to July 24. After stalling against that level, the price tumbled all the way down to and through the 200 hour moving average (green line in the chart below) at 105.724 currently. The low price reached 105.573 before once again quickly reversing. This time the momentum was to the upside and back toward the session highs.
The last hourly bar took out the previous high on its way to a new day high at 106.466. That break should have spurred on more buying with the old floor at 106.629 – 705 as a key target. However, momentum quickly slowed after the break, and the price has since moved back down toward the broken 61.8% retracement at 106.248. Traders are getting whipped around a bit today.
Buyers are trying to keep control (watch 106.05 to 106.16 as support now). That area has had some swing levels going back to July 24 (see green numbered circles).
