The pair closed above the 114.00 level yesterday for the first time since October 26, but has move back below
The USDJPY has seen the price traded above the 114.00 level on a number of occasions since October 26, but that day was the last time the price closed above the level until yesterday (close yesterday was at 114.055).
The USDJPY pair moved up in the Asian session and extended the week's high price up to 114.274. However, the area between 114.20 and 114.30 has been home to a number of swing highs going back to October 21 (see red numbered circles in yellow area - see post from yesterday). Sellers used the area to sell/take profit after the sharp rise from Tuesday/Wednesdays lows (the low for the week reached 112.719 - the moved to the upside was about 157 pips).
Since then, the price has rotated lower, and just made a new session low at 113.916 - below the 114.00 level (and now lower on the day). On further selling, the low from yesterday 113.80 followed by the 200 hour moving average at 113.646 become the next downside targets.
On the topside get back above the 114.00 to 114.02 (high from last Friday) could lead to a run back toward the aforementioned resistance area at 113.20-113.30.
Overall sellers are more intraday, but they have more work to do to wrestle back more control.
For the week, the Monday into Tuesday bottom near the 50% midpoint of the move up from the October 4 low. That level came in at 112.754. The low for the week reach 112.719 (just below that level).
On Wednesday, the low stayed above the 50% retracement, giving the dip buyers the go ahead to push higher. The CPI data helped to extend the upside to and through the 100 hour moving average (blue line) and 200 hour MA (green line). The price remains above those moving average lines and would need to be re-broken to increase the bearish bias. Stay above and more of the control remains with the buyers in the intermediate-term..
