The USDJPY has wandered lower in trading today, helped by continuation selling from Friday's failed break.
Looking at the 4 hour chart, the USDJPY moved above a swing area between 134.49 and 134.76 on Friday. The high price extended up to 135.111 before running out of momentum and rotating back to the downside.
On Friday, the fall, took the price back below the swing area (see red numbered circles), closing at 134.14. The buyers had their shot. They missed.
Today, in Asian trading the USDJPY price rebounded just above the low of the swing area up to 134.533. Once again momentum higher stalled, and the price started to find sellers. The price subsequently rotated back to the downside, reaching a low of 133.914. The current price is trading at 134.05.
Drilling down to the 1 hour chart (see chart below), the move lower today did find willing buyers against the rising 100 hour moving average . That moving average currently comes in at 133.886, just below the low price for the day at 133.91.
Buyers are leaning against the risk defining moving average on the first look. It will now take a move below, to tilt the bias more to the downside in the short term. The low from Thursday at 133.59 followed by the 38.2% retracement of the move up from the February 10 low at 133.079 would be the next downside targets.
Dip buyers against the 100 hour MA, would now want to see the recent swing highs near 134.30 and 134.36 broken ahead of the higher swing area between 134.49 and 134.76.
Sellers early to start the week, but the moving averages support target held on the first test.