The USDJPY retraces into intraday support

The USDJPY peaked short of the natural resistance at 149.00 and technical resistance at 149.10. The high price reached 149.957.

The corrective move lower today, has seen the price move down toward 148.72. Looking at the 5-minute chart, it is the 1st major correction today since bottoming in the late Asian session where the trend move started.

The 38.2% retracement of that trend move higher comes in at 148.712. The rising 100 bar moving average comes in at 148.68. The 50% of the same move higher comes in at 148.637.

This area (yellow area) is where intraday buyers should enter if the trend buyers are to keep control. The USDJPY is “on-sale” intraday if the trend is to continue.

Putting it another way, the risk is defined against the area too. If the price moves below 38.2% and the 100 bar MA, it would not be good for the trend bias (get out). A move below 50% could see even more downside momentum.

Trends are fast, directional and tend to go farther than what traders expect. If the trend is to continue TODAY, this is the area where the buyers should try to hold support.

This article was written by Greg Michalowski at Source