Can it remain below?
The USDJPY got hit hard in yesterday's Yellen inspired dollar sell-off. That momentum took the price below trend line support and in the new trading day below the 200 hour MA (green line in the chart below). IT even moved below the 50% of the move up from the March 17 low at the 112.22. The pair bottomed at 112.00 (was that a Mike option target?)
What happened next?
The price moved back above the 50% line at 112.227 and then tested it and moved higher. The quickish reversal makes the move below the 50% look more like stops being triggered - with buyers looming below
The correction higher stalled just before the 38.2% retracement and is now back below the 200 hour MA line (green line).
So what now?
I have to give the bias to the sellers still. The correction held below the 38.2%. The price is back below the 200 hour MA line (now a close risk level for shorts at the 112.54). The 50% will provide an intraday challenge that may create a floor. On a move below, however, the sellers should start to feel more confident.
