The USDJPY has been stepping lower this week. Monday saw the pair move down to test the 200 hour MA (green line) and bounced on Tuesday. That bounce reached the higher 100 hour MA (blue line), found sellers and reversed sharply lower. Yesterday, the pair traded above and below the 50% retracement of the move up from the March 23 low creating a modest floor at 109.57 to 109.592. The high stalled ahead of the 110.00 area (the high was 109.936).
Today, the pair moved below the floor from yesterday, retested that level and holding below that area, gave the sellers the "go ahead" to push lower.
The subsequent run lower has now seen the price fall below the 61.8% at 109.377 and a swing area between 109.23 to 109.356. That is now close resistance for the sellers looking for more.
On the downside, the pair has reached the high of another swing area between 108.855 and 108.985. The low has reached 108.992. Be aware of big number support levels. There may be some option action as well near that level.
The trading range is 91 pips. That is well above the 57 pip average over the last 22 trading days. There may be cause for pause/profit-taking against the 109 level. If sellers are to keep the pressure on, getting below that 109 level and then the 108.55 would put the pair in the lower extreme which started the run higher on March 23 (at 108.398).
It took six days to move up to the high. We are in the sixth day with moves trending lower. The run higher was steeper, but the sellers are making a play (mostly this week). Watch the 109.00 level for clues now.