Lower swing zone for the week tested
The USDJPY moved to test last week’s high at 104.756 yesterday, but found sellers. That selloff intensified in the last few hours after the pair fell below the 100 and 200 hour moving averages (blue and green lines) and then the 50% retracement of the range from Nov 18 to 104.204. The last 4 hours saw the price drop from 104.335 to 103.83.
At the lows, the pair is testing the swing lows of last Friday and Monday (see green numbered circles). This zone is between 103.825 and 103.90. A move below this level would cause traders to target swing lows dating back to November 18 between 103.65 and 103.713.
The current level is currently finding modest buyers who are leaning against the lows. If price were to rebound, moving back above the 104.00 to 104.074 area would be expected to partially dampen sellers’ momentum.