Price correcting lower in the pair
The USDJPY fell on Friday and in the process fell below the old ceiling between the 105.78 and 105.80 level. It also fell below the 100 hour MA (blue line). That dip took steam out of the break higher on Wednesday at the same area and saw the price run to 106.10.
The inability to stay above that level played a part in the early price action today. At the opening the high price stalled ahead of that area and the price started to march lower.
The last 5 hours has moved the USDJPY pair lower which has seen the price move away from the 50% retracement of the move up from the October 2 low at 105.519, and more recently the 61.8% retracement of the same move at 105.381. Stay below those levels would keep the sellers more in control. Move above 105.519 and a retest of the 105.80 area (including the 200 hour MA) would be targeted.
Now, the sellers remain in control.
On the downside the pair is moving toward a swing area support target between 105.167 and 105.257 that confined the price between September 22 and September 28 . That area was broken on October 2, but failed and reestablished support in that area.
If the pair is to extend lower, getting below that area would be the next target to get to and through.
