The USDJPY ran higher with the higher USD this morning, and the pair reached - and breached - the high from last week at 135.111, along with the old topside trend line just above that level at 135.14. However, after reaching 135.22, the momentum faded, and the price started to rotate back lower. Buyers started to turn to sellers.
The corrective low has now reached 134.66. The current price is at 134.78.
What next?
The low off the high has reached back into the swing area between 134.492 to 134.76 (see blue numbered circle). That area was home to swing lows and highs going back to December and early January. The price moved above that area last Friday (and failed)
Can the price now stay above that swing area?
For buyers, staying above that swing area will keep the buyers in play with hopes for bigger move back to the upside.
As for the sellers from the trend line above (and the highs), they now want to see a rotation back below that swing area. Doing so will increase the sellers confidence, that the break to the upside was once again a big failure.
