The USDJPY has been trading in an up and down choppy price action today. The low price remained below the low from last Thursday/last week. That low price from Thursday stalled right ahead of the 127.00 level at 127.018 and ahead of a swing area between 126.93 and 127.008. The low price today reached 127.14 before bouncing higher
The high prices intraday have seen lower highs. There have been modest breaks above a downward sloping trendline connecting highs from last week, but momentum above those lines stalled fairly quickly. The trendline currently comes in around 127.67.
Between the low and high today sits the 38.2% retracement at 127.508.
Back on May 12, the low price bounced off of that retracement level. On Thursday last week there was a break below but after the price move back above, it led to more upside short covering. On Friday, the 38.2% retracement was reestablished as the support (the low price stalled against the level once again.
Today, however, there has been up and down price action around the retracement level indicative of a market that is unsure of the next move, and waiting for the next shove.
On the downside keep an eye on 127.337 (low of the swing area between that level and 127.434). Move below and traders will eye the lower swing area near the 127.00 level.
On the topside, getting above the 128.00 level would have traders looking toward the 100 hour moving average at 128.253
