The USDJPY has been trading MOSTLY between the 129.01 to 130.60 area over the last nine trading days. There were field breaks above on January 23 of January 24 respectively, but resistance was reestablished at 130.60 last week and again earlier this week, before moving to the downside yesterday. The price close below the lower end of that swing area yesterday, and continued lower in the early Asian session.
A bounce in the early European session took the price back above the 129.01 level, but momentum faded and the downside was reestablished.
The US session low the price back into a swing area between 127.97 and 128.22 before rotating back to the upside. The current hourly bar moved up to a high of 128.91 just below the lower end of that red box. The price is currently trading back down at 128.45 as sellers have been able to keep control below the 129.01 level.
What next?
Resistance remains at 129.01. Stay below and the sellers are more control. On the downside, the 127.97 to 128.22 is the swing area that would need to be broken to open the door for the extremes reached in and January that this all the price extends down toward 127.21. Move below that level and it opens a door for a move toward 126.554 That represents the 50% midpoint of the range since the 2021 low
