The USDJPY tumbled yesterday as coronavirus fear gripped the markets and sent flows out of the USD in the process. However the pair did rally into the close after a break below its 200 hour moving average (green line) failed. The rally continued into the Asian session. However as the price approached the 111.00 and the 38.2% retracement at 111.056, sellers reentered and slowed the rally. Traders leaned as risk can be defined and limited against the level (ps. the corrective low from February 20 was also near that 38.2% level).
The move back to the downside today has seen the 200 hour moving average breached again. However, the 2nd verse was the same as the 1st, as the low from yesterday stalled the decline today. Again risk can be defined and limited. Traders who accepted that risk, leaned and pushed the price higher.
Technically, the double bottom at 110.336 area held support. Going forward, if the price can stay above it gives the bulls some hope. Move below and traders will be looking back toward the consolidation area between 110.12 and 109.523. That area confined trading for a number of days in early February (breaking on February 19 last week).
On the topside, getting and staying above the 200 hour moving average and moving to - and above - the downward sloping trend line at 110.92, would be steps in the bullish direction. The market can then focus on getting above the 111.05 area.