USDJPY down but retracing a little. What levels should traders eye for sellers?

USDJPY down but retracing a little. What levels should traders eye for sellers?

Price trending lower.

The USDJPY has been trending lower for the day.

Looking at the 5 minute chart above, the price had a momentum move lower in the Asian Pacific session.  The price fell below the 100 bar MA and has stayed below.  

We are currently in a correction and the price is testing that MA level at 105.767 (blue line).  The level is holding on the first test so far and a move back below the broken trend line would give the shorts more confidence.  The 100 bar MA is a close corrective level to look for sellers. 

The 2nd level is around the 105.84-86 area.  Staying on the 5-minute chart, that area is home to a number of swing levels before breaking lower.  Stay below on a test, is more bearish. Move above and the sellers today, might look to cover more into the weekend. 

The 105.86 area is also important on the hourly chart. 

Looking at it (see below), the price of the USDJPY cracked below a trend line earlier today (bearish) and the underside of that trend line comes in at 105.856. That will increase that levels importance on a correction today.  It is a key barometer for bulls and bears on the hourly chart today. 

What does the picture from the daily chart say?

The 61.8% of the move up from the 2016 low to the 2016 high comes in at 106.44. The high today reached 106.36 and yesterday’s high reached 106.41. Staying below is bearish.  

On the downside, the 105.54 area (give or take a few pips) is home to a number of swing lows.  Earlier this month the price fell below the level to a low of 105.24 but the momentum faded.  Get and stay below the 105.24 will be eyed for more bearish clues now.

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