The price remains below the February 2020 high of 112.22
The USDJPY moved to a new high for 2021 yesterday on a break of the 111.653 level (high from early July - see daily chart below). The price moved up to a high price of 112.043.
Today the high to low trading range has been and modest 28 pips (compared to a 53 PIP average of the last 22 trading days - about a month of trading). The pair did trade to a new high for the year of 112.074. However, there has been a lot of up and down choppy price action as well (see hourly chart below). The low today in the Asian session reached 111.792. The low in the European session reached 111.807. The current price trades at 111.85.
So, the price is chopping in a narrow trading range near the highs the year. What next?
Clearly buyers and sellers are battling it out after the new highs for the year has seen some apprehension. Although there is some stall, the benefit of the doubt has to remain with the buyers/longs as long as the price can remain above the 111.653 old high.
It would take a move below that old high level, two encourage more downside probing with the swing area between 110.96 and 111.115 (see daily chart and green numbered circles) as a lower target on further selling.
Absent that, and the buyers still remain firmly in control
PS The USDJPY has a 6 day up streak. The close yesterday came in at 111.965. The price is currently below that level which puts in jeopardy the six day win streak. A moved back into positive territory could be a clue for further upside momentum.