The USDJPY has moved sharply lower over the last few days after stalling against its 100 hour MA back on Tuesday. That hold against topside resistance, started the run to the downside which has now seen the price move 221 or so pips to the downside.
In trading yesterday, the pair did find support against an old ceiling near 113.954 and the 61.8% retracement of the move up from the November 30 low at 113.984. The price bounced modestly back into resistance near 114.20 and 114.288.
However, sellers leaned in that area and pushed the market lower in the Asian session - breaking below the 113.95 to 114.00 in the process. That break also pushed the price back into a "red box area" going back to November/December of 2021.
Giving the sellers more confidence was from the correction higher into the London morning session where the price high stalled against the 61.8% retracement at 113.984. Holding below that retracement/ceiling, gave the sellers the confidence to shove the price toward a new low for the day and lowest level since December 20 at 113.47
What next?
Needless to say the 114.00 level has gone from a floor to a ceiling once again. Stay below that level is paramount for the sellers now who are looking for lower levels.
Ahead of that watch the 113.77 to 113.806 area as a close resistance intraday. That was an old ceiling area while the price traded up and down in November and December (see blue numbered circles). Stay below keeps the sellers more in control.
