The USDJPY has moved up to test a swing area between 127.33 and 127.434. The price is also moving up toward the falling 100 hour moving average at 127.50. The 38.2% retracement of the move up from the corrective low from March 31 is also near that area at 127.508. Lots of key resistance between 127.33 and 127.508 if the sellers are to remain in control.
Recall from yesterday's trade, the Asian session high moved up to test the 100 hour moving average and found willing sellers. Back on last Thursday, the price also corrected toward the 100 hour moving average only to find sellers early against that level.
With the moving average lower, the hurdle is easier. However, until the price moves above, the sellers remain in play and in more control. Sellers will lean against the moving average with stops on a break above.
On the downside, the move higher today was able to move back above a swing area between 126.93 and 127.008. A move back below that area would give sellers against the 100 hour moving average more comfort. Below that level, the low from yesterday at 126.33 stalled just ahead the 50% move higher from the March 31 corrective low. That level was also a swing hi going back to April 13 and near swing lows from April 15 before the next leg higher.
