USDJPY has broken below a key support level

The 114.00-113.80 area was important for Tuesday's Yellen rally and the break below is now erasing that rally.

USDJPY M30 chart

It's not a shock to see where the immediate resistance is right now, it's at 113.75. We've got some at 114.00 too and there will be more up at 114.25/30.

And what of the downside? We're seeing support at 113.50, and that will be followed by the 14th Feb lows around 13.20/25, which coincides with a descending trend line drawn through the 3rd/27th Jan highs. From there, it's support at 113.00 and 112.75/80.

The reason why we've fallen so hard is just as perplexing as the reason we went up in the first place. Maybe this was one of those times when it's simpler to just trade the levels than get sucked into the reasons why it's moving. I was certainly sucked in. I've been touting shorts into 115.00 and 115.60 recently but I left it alone yesterday because I thought the rally would have more to go, especially when Yellen's comments on Tuesday were backed up by the data yesterday. And thus we topped out at the 55 dma on the button. That's trading for you.

One thing is confirmed, the pair is still very much a rally seller. The Fed and Trump expectations trade is being confined to intraday moves, not ball busting breakouts, and that's the key point when you take a wider look at the price ranges.