USDJPY corrects to the 50% of the days range

The USDJPY continued the trend to the upside today, but after stalling at/near the natural resistance at 145.00 (the high reached 144.984), the price has moved to the downside. In the process, the price moved to test the 50% midpoint of the move up from the day’s low. That level comes in at 143.822. The low reached 143.828. See post earlier earmarking the 50% as a key target to get to and through to have the sellers start winning.

When the market trends, measuring the corrections of trend like moves gives traders clues to the overall bias (SEE video here). Hold the correction zone (I define it as the 38.2% to 50%retracement of the last trend move) keeps the trend intact. With the buyers holding the 50% in the USDJPY today, it keeps the buyers more in control

The price is currenly at 144.09.

Looking at the hourly chart, the holding could be the neckline of a head and shoulder. In which case, the price upside would be limited before breaking to new lows.

Alternatively, it could be the start of the resumption of the trend, with a move back toward the high.

Time will tell.

Looking at the 5 minute chart below, the price is currently back below the 200 and 100 bar MAs. Those MAs will be barometers now on the topside. Move above each would give the buyers more confidence that the trend is in place. Stay below and then break the lows today, opens the door for more selling.