The 109.675-723 has been broken

As per the post from yesterday and from previous days (CLICK HERE), the USDJPY stalled the rally yesterday at the 100 hour MA and fell below the 200 hour MA. Those turned the bias modestly lower with more downside work to be completed.

The 109.675-723 has been broken

Today, the pair has continued the downside work by breaking below the old ceiling level from December at 109.675 to 109.723. Staying below that ceiling is now what the sellers want to see to keep them more in control.

On the downside, there is a swing area around the 109.422 level (see green numbered circles) and below that the 38.2% retracement of the move up from the January low to the January high that cuts across at 109.275.

The buyers took the price above the December ceiling on January 13, and moved up and down above that ceiling for 8 days. Now that it is a broken, the question for traders is "Can it remain broken?".