The USDJPY fell yesterday but found support buyers near the 200 hour MA and the 50% midpoint of the 2022 trading range (see post here).
A move below those technical levels (and the lower 100 hour MA - blue line), would have been needed to tilt the bias to more to the downside. That did not happen as the buyers started to nibble against the risk defining level.
The price today moved higher in the Asian session. As Eamonn reported, the initial yen weakness was associated with the report that SoftBank’s sale of Arm to Nvidia has fallen through. That news along with the technical hold against the 200 hour MA gave the buyers the go-ahead to push higher.
The high price reached to 115.54. That high corresponded with the low of a swing area between 115.53 and 115.67 (see red numbered circles). Going back to January 4, the price moved above that area and then tried to hold support against it. On January 10, the price broke below, and has stayed below since that time (with two separate tests on January 11 and again on January 28th).
The return to the low of that area has found sellers on the first look. The price rotated back down to the 61.8% of the 2022 trading range at 115.245.
What next?
The pair is trading between the 61.8% below at 115.245 and the upper swing area. Yields are moving higher in the US (helped by a move higher in Europe as well). That may support the dollar a bit, but there is not any panic. The US stocks are set to open mixed with the Dow up and the S&P and Nasdaq down.
The buyers stalled the fall near MA support levels which gave a bullish go ahead, but the aforementioned swing level was a solid floor that turned to a solid ceiling. So respect must be give that that area as well. Trade the support/resistance range until the next shove. .
