Forex technical analysis: USDJPY stalls at swing area after sharp fall(s)

BOJ trims bond purchases

The BOJ had a minor tweak in its bond puchasing today, and that sent Japan yields higher and the JPY higher as well (USDJPY lower).

The sharp fall in the USDJPY saw the price tumble through the 100 and 200 hour MAs (blue and green lines in the chart above) and down to the 112.465-494 area. That area was the home to swing lows and highs going back to December 29th (see red circles 1, 2, 3 and 4). The price bounced. The next run lower into the NY opening also stalled at the same area. The support/floor is established.

What to watch on the topside on a further correction?

Although the price rise off the first low was able to get back above the 200 (green line) and 100 hour MAs (blue line), I would expect that sellers would lean against that area on a rebound. Watch for sellers in the 112.78-84 area.