Swing lows in play
The USDJPY came down the low so an extreme area off the price action the hourly chart.
Looking at the chart, the area was defined by swing lows going back to the end of April/early May. At that time the price bottomed at 106.23 and 106.425 level. On Monday, it did it again in the first hours of trading. Today we have seen the price bang against the low and bounce toward topside trend line (at 106.67). Watch for a move back below the 106.42 now to signal more downside (with a key level at the 106.237 still needed to be broken). The trend line above is the minimum level to get above, if the buyers are to take back more control.
