USDJPY up and down today
The USDJPY moved lower in the early Asian session and in the process moved below a swing area defined by lows and highs going back to July 28 (see green numbered circles and yellow area). That area came between 105.21 and 105.31. In between sits the 61.8% retracement of the move up from the July 31 low at 105.274.
The failure below that swing area sent the price racing to the upside where buyers ran into sellers just ahead of the 50% midpoint of the same range at 105.612. Holding the resistance sent the price back to the downside and back below the swing area for the 2nd time today. Another fail and the price is now trading between the technical levels at 105.43.
Ups and downs for the pair.
Nevertheless the levels remain the same. If the buyers are going to take back control, they need to hold above the swing area below (down to 105.21) and get back above the 50% midpoint at 105.612.
Conversely if the sellers are to continue to win, they need to keep a lid on the pair against 105.612 and do a better job of breaking through the lower swing area.
That’s the battle in what has been an up and down session for the pair.