Trend lines and retracement tested
The USDJPYs price action on the 5 minute chart, started to take a turn to buyers, when the price moved above a couple trend lines and the 100 bar MA (blue line) back down at 105.48 and 105.54. There was a key re-test of the 100 bar MA, that kept buyers in the game.
Now the price is testing resistance against the 38.2% of the move down from yesterday’s high, a trend line connecting the highs from today, and some swing levels today. All that comes in at 105.78 -80.
Is it enough?
Traders can lean. If it goes above, more of the selling momentum get’s eaten away.
If it holds, and the 200 bar MA below at 105.64 is breached, that would give the sellers more confidence that the corrective move higher is over (at least for now).
Remember, the move today stalled the fall at the March low at 105.245. So there was a reason to buy at the support. The price correction is also testing the underside of the lower broken trend line at 105.743. It is another reason to potentially expect sellers.