The USDJPY tests swing area. Stays below the trend line.
Trades near lows for the day
Yields were higher. Stocks were higher. The USDJPY has done a lot of up and down in trading today, but are trading near the lows for the day as the London fix approaches.
Looking at the hourly chart, the pair is trading near a swing area that has done a fairly good job of stalling falls going back to January 25th. That area comes in at 108.40-50. There have been some swings below back on January 26th and again on Friday, but falls stalled fairly quickly. The low today reached 108.43.
Nevertheless, the sellers are more in control. The corrective rally in the London session was able to stall the climb (see green circle 3). That trend line cuts across at 108.68 currently.
So although the sellers area trying to put a lid on the pair, there is still more work to be done to give the sellers more confidence. Get below the 108.408 level, would increase the sellers momentum and push the pair toward the swing lows for the year.