100 hour moving average at 103.542
The USDJPY traded to its lowest level since March 2020 yesterday, and in the process the pair fell below November 2020 low at 103.175 and the March 12.2020 low at 103.066. The low price extended to 102.868 before rebounding and closing at 103.045. Bears were holding on to short term control below those swing low levels.
Today, the price action has seen a corrective move to the upside (see hourly chart below). The low for the day was just below the closing level from yesterday at 103.04. The current price trades at 103.354. The high price extended to 103.59.
Drilling to the hourly chart below, after moving above the 103.175 level, the price has been able to stay above that level. That level and the low from March 12, 2020 at 103.066 is intraday support. So far, the corrective low on the move down from today's high has stalled at 103.188.
On the topside, the USDJPY stalled the rise right near its 100 hour moving average at 103.538 currently (blue line in the chart below). Traders leaned against the MA as risk can be defined and limited.
So overall, today is shaping up as a corrective day from the recent move lower. That has redefine support against previous swing lows in 2020 between 103.066 and 103.175. Resistance is defined against its 100 hour moving average at 103.539 (PS NOTE the 38.2% retracement of the move down from the December 10 high is also near the 100 hour moving average at 103.520).