Dip buyers get another shot against the support level.
The price action in the USDJPY has been up and down today, but at the lows, the price retested the 100 day MA at 111.787 and buyers leaned. The low price reached 111.82. Risk could be defined and limited against the key MA and I would expect that to continue (until it does not).
Looking at the hourly chart below, in the NY session yesterday, the price moved (back) above that MA line, and based against it before moving higher (and to the highest level since May 17th). So the last two tests (at red circle 3 and 4 in the chart below) have used that MA as a support level. That solidifies the level as a key level for buyers (and sellers for that matter).
Things get more ugly when you drill down to the 5-minute chart. It is in this chart that you can see the up and down volatility. Trade in the middle of the ups and downs, and there have been good times and bad times (for longs/shorts).
The pair closed at 112.33 and - apart for some choppy action in the early European session - the price has been mostly lower on the day. The price needs to extend above that level.
The high today is also lower than yesterday's high. We trade right around the 100 and 200 bar MAs at 112.15 area. You might be able to argue that there may be buyers against the 112.00-07 area now. Often, a natural support level becomes a level to lean just because it is a simply a nice round number. Stay above, more bullish.
