Moves back above swing lows from last week
The USDJPY moved below swing lows from last week between 108.602 and 108.619 in the London morning session, and moved toward a lower swing area between 108.328 to 108.37. The low reached 108.398 and has seen more buying over the last 5 hours of trading.
The move back higher has now taken the price back above the higher swing area at 108.60 to 108.619. The current hourly bar has been able to stay above that area. For intraday traders, staying above that area will be eyed as close support. Stay above is more bullish. Move back below (and stay below), and the sellers have the advantage.
On more upside momentum, a topside trendline cuts across at 108.77. The 50% retracement of the range since March 10 comes in at 108.843. The 100 and 200 hour moving averages are between 108.86 and 108.917. Those would be the next upside targets.
On the downside, the trading range over the last 12 days has been between the 108.328 and 109.357. The range of 103 pips over that time period is not a lot. Move below 108.60 and traders will be eying the recent low at 108.328. Break that level, and we should see further downside momentum as the payer breaks out of its non-trending trading range.
