Pair tests lower swing area and low from July at 106.629
The USDJPY continues to trend to the downside and in the process is testing the next targeted support levels defined by swing lows (see earlier post here). That area comes in at 106.629 to 106.66. The low just reached 106.661.
Close risk from the trend move lower now comes in at 106.823. That is the 50% of the last "leg" lower today on the 5-minute chart (see yellow area in the chart below). If the market trends, it will keep that trend momentum going if the price can stay below the 38.2-50% of the last leg.
The first trend leg lower could not even get to the 38.2% retracement at 107.025. The high reached 106.985 and rotated back to the downside.
The USDJPY is trending lower but is approaching the next key support target. Nevertheless, if the price is to stall the trend, it needs to do the minimum and get above the 50% of the last leg lower at 106.823. Absent that, and the sellers are still in control.
