Resistance defined
Technically, the USDJPY based against a lower trend line earlier today (see blue circled lines). That line stalled the fall and the corrective move was on today.
That corrective move higher this morning, took the price to a swing level defined by swing lows and highs from the last three days of trading (at 109.10-12). The high corrective price reached 109.104. The 50% of the move down this week is also in that area at 109.120.
So traders have a ceiling in place and they have a lower trend line also as a potential target on the hourly chart.
Taking a look at the daily chart below, the fall today did take the price below the 38.2% at 108.796, and to a new low for the month of May (taking out that old low at 108.64). Those levels, will now be eyed on the downside again. Get below and the sellers are in more control. Move to those levels and hold, and the sellers may be lightening up on their shorts. The swing low off the high has reached 108.76 so far (between the levels).
PS. the S&P index corrected up to the 100 day MA at 2710.77 (the high reached 2710.10 and stalled). We are currently trading at 2701.67. If the USDJPY is a safe haven on stock declines, if the S&P can't get back above the 100 day MA, that may keep the pressure on the pair.
PSS. 10 year yields are now down -8.5 bps. The USDJPY tends to keep an eye on ebbs and flows in the debt market.
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