The USDJPY popped up to the 38.2% retracement at the 82.416 level as end of week/month/quarter flows push the pair higher (see chart above). The resistance held and the price has rotated back down. On the move to the upside today, the price moved above trendline resistance (see chart above). The underside of that trendline currently comes in at the 82.16 level. Look for support against that level today.
The pair has been pressured over the last few days – stepping down and correcting some of the sharp gains from January and February. Repatriation of funds back to Japan was likely a contributing factor. The move down earlier today, tested lows and highs over the month (at the 82.85-96 area) but could not push materially below the level (see daily chart below). This keeps the bulls in charge and also increased the importance of the 81.82-86 area as a key level of support.
