The USDJPY moved lower in the Asian and into the North American session. In the process tested the low from Monday's trade at 1.20562. The low price today reached 1.20556, just below that low.
The inability to extend the downside momentum led to sellers turning back to buyers. The price subsequently moved back above its 200 hour moving average at 1.20777, tested the 100 hour moving average at 1.20935, before moving through that level over the last hour or so of trading and racing up toward the high for the day at 1.2116. That high was just below the high from yesterday at 1.21167.
The point is that the rotation to the downside from yesterday (and today's earlier high) has been nearly fully retraced.
The question now for risk focus traders is "Does the high stall the rise and the price rotate back lower?" or " Do we see a move to and through the high and continue the momentum toward the swing high from last week at 1.21323 (and another swing highs between 1.21355 and 1.21437).
The Bank of Canada Rates unchanged earlier today as per expectations and said they will hold current level of policy rate until inflation objective is sustainably achieved. They also will continue quantitative easing.