The USDJPY ran to the downside over the last few hours from a combination of the Fed Chair saying that the banking pulling back on lending, lowered the terminal rate for the Fed, and the news around the same time that the US debt ceiling talks had stalled. US yields moved lower. The USD moved lower.
For the USDJPY, it fell back below the old swing highs from March and May 2023. Those lows come in at 137.76 and 137.91. The low reached 137.414 before rebounding back higher. The current price is trading back between those at 137.83 currently.
Traders are sitting on the fence. Do they take the price back above the 137.91 level, tilting the bias more to the upside, or do they take the price back below the lower level at 137.76, tilting the bias more to the downside in the short term?
The high corrective price off of the low reached 137.877. Sellers are leaning against the topside level so far.
