The cycle high going back to June 2020 is in traders sites
The USDJPY peaked this week on Tuesday at 109.229. That was the highest high going back to June 8, 2020, but fell just short of a swing high going back to April 2020 at 109.391. The June 2020 high reached 109.843. Those levels remain targets on the topside.
Drilling to the hourly chart below, the price decline off the high so the pair moved down toward a swing low area near 108.317, and just above the 38.2% retracement of the move up from the March 2 swing low.
Yesterday, the price lows move toward that area (between 108.245 and 108.317), but fell short (the low reached 108.35). Selling was stalled by buyers against the risk defining level.
In trading today, the price move back above the 100 hour moving average (blue line at 108.703 currently), and buyers became more empowered. They have since moved the price up to a high of 109.16 - just 5-6 pips short of the high for the week.
The 108.907 to 108.963 is a swing area (see the low area and red numbered circles). The price is trying to stay above that area now. If it can, a retest of the high for the week at 109.229 is certainly the cards. A break opens the door for further upside momentum.