Sellers leaned against the cluster of resistance. The price is negative on the day now.
The USDJPY had a cluster of resistance between the 109.029 and 109.074. That area includes the swing area, (see red numbered circles), along with the 200 hour MA and the 50% midpoint of the trading range for the month of May (at 109.061). See earlier post HERE outlining the area.
The price high at 109.068 within that area. Sellers leaned as per expectations and the price has rotated lower.
The fall did try to find support against the 100 hour moving average (blue line currently at 108.873), but that support level has given way and the price has rotated to new NY session lows, and has also moved into negative territory on the day.
The next target would start to look at recent swing lows beginning with the swing low for May 12 at 108.654. Below that and the swing area from last week between 108.566 and 108.606 would be targeted. Earlier today, the price did briefly dipped below those levels to 108.553, but quickly rebounded.
With the price moving back below the 100 hour moving average, the pendulum has switched and the sellers have taken back more control. Stay below the 100 hour moving average keeps those bears in control.
