USDJPY: Moves above 38.2% Retracement but fails. Will upside momentum be threatened?

The USDJPY has been trending higher over the last few days, and in the process has been able to move above the 38.2% retracement of the trend move down from the November high. That level comes in at 144.698. Above that was the December 19 high at 144.938. The high-price today reached 144.74 and has rotated back to the downside.

The current price is back below the 38.2% retracement and that failure threatens the upside momentum. If the price cannot get up back above the 38.2% retracement, the corrective movie is just a plain-vanilla variety. We could see buyers turn back to sellers. As is there is a reason to sell against the 38.2% with a stop on a move back above.

For traders looking for more downside confirmation, a look at the 5-minute chart shows the rising 100-bar moving average. If the price can move below that moving average, we could see more selling on the back of weaker short-term intraday technicals, and the failure above the 38.2% retracement.

Be aware. Be prepared.

This article was written by Greg Michalowski at Source