The USDJPY is mired in a 58 PIP trading range so far today to start the new trading week. That is much less than the 117 PIP average of the last 22 trading days. So a slow start for the current trading week in the USDJPY.
Technically, the buyers had the shot above the converged 100 and 200-hour moving averages (blue and green lines in the chart above). That was the same case on Friday on a few separate occasions. The inability to extend further turned buyers into sellers on the disappointment.
On the downside, the next target area remains the same as Friday between 138.73 and 138.897. If able to move below that level and stable of that level, the next key target comes against the 38.2% retracement of the move up from the May load to the May high at 138.086. Ultimately if the sellers are to take more control, getting below that 38.2% retracement is essential.
Conversely, they move back above the 100 and 200-hour moving averages and staying above would increase the bullish bias and have traders looking toward 140.22 up to 140.443 (see green circles on the chart above).
To watch the technical story, click on the video below!
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