The USDJPY has moved lower as US rates move to the downside with the 2 year yield trading at 4.646%, down -6 basis points. The 10 year is at 3.720%, down -7.5 basis points.
For the USDJPY, the pair broke above a key swing area ceiling between 140.22 and 140.44 in the Asian session, and then above the double top from May 29 and May 30 at 140.924. The prices spiked up to 141.497 before rotating all the way back to the downside, to retest the aforementioned swing area.
The USDJPY price is also now testing the 38.2% retracement of the move up from the May 31 low. That level comes in at 140.322 and that is where the price has so far stalled.
Will the buyers come in against the old ceiling/retracement level?
That is the short-term question that traders will be asking. If the price can hold 140.22, a rotation back above the double top at 140.924 would be the next topside target once again as the buyers try to rebuild from the break earlier today.
Conversely, move below 140.22 and the buyers are likely to turn to sellers on the failed break, and the focus returns to the rising 100-hour moving average at 139.851 currently
This article was written by Greg Michalowski at www.forexlive.com.
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