The USDJPY move higher yesterday and in the process tested a topside channel trendline and a swing area in the 104.92 – 104.94 area. That trend line and swing area stalled the rise. Trading in the new day has moved back lower and gotten closer to the lower channel trendline at 104.63 (and rising).
The price action of to the upside kept the sellers more in control. It helps to solidify the area as a key level to get above if the buyers are to take more control going forward. Absent that, the buyers are simply not winning.
Now, if support against the lower trend line holds, there can be a reversal higher and run toward the 50% at 105.039 and the falling 100 hour moving average at 105.115.
So watch the 104.63 level on a test. That trendline will be a key barometer for both buyers and sellers.