50% retracement at the 108.50 level
The USDJPY has continued to move lower from the May 30th high and just about reached the 50% retracement of the move up from the May move higher. That move took the price from a low of 105.543 to a high of 111.444 (on May 30). The 50% midpoint of that corrective rally comes in at 108.494. The low today 108.52. Traders are leaning against the risk defining level.
Look for the buyers to continue the lean (the area also corresponds with lows from May 13 and May 16 (at 108.51 and 108.46 respectively). Traders will likely stop themselves out on a break below these levels with the next target being 108.22.
What would look better for the dip buyers should the aforementioned lows hold? Looking at the 5-minute chart below, the price initially dipped to 108.81 and then 108.84. On the break below that area, the high corrective price came up to 108.841. So a move back above that level would be the minimum requirement if there is to be a meaningful correction off the 50% level.
You have to trust your tools in trading (and in life too! ; ) .
