USDJPY corrects higher to broken 38.2% retracement level at 139.176. Battles is on now.

The USDJPY moved to a new low going back to May 17 today, and in the process dipped below the 50% midpoint of the move up from the March 23 low at 137.355, and sniffed the 200-day moving average at 137.150. The low price reached 137.23 between those 2 key technical levels.

The subsequent move to the upside has taken the price back above a swing area near 138.73 and 138.897, and up to the broken 38.2% retracement of the same move up from the March 23 low. That level comes in at 139.176. The high price today reached 139.154.

The move off of the high has moved down to a low of 138.73 so far. That was at the low of the swing area off the 4 hour chart (see red numbered circles). The current price trades at 138.91. If the price is able to move below the 138.73 level we could see further downside probing in this pair. Conversely, a move back above 139.176 should see further upside probing.

So overall, buyers and sellers are now battling it out between 138.73 and 139.176. We will see how this fight is resolved in trading here today. However, some of the downside momentum in trading this week has been neutralized with the bounce off of the key support at session lows near the 200 day moving average and the 50% retracement level.

This article was written by Greg Michalowski at Source