Watching some intraday levels on corrections now
The USDJPY fell initially in the Asian in early European session, but did find support near a swing area between 109.024 and 109.074. The lows for the day stall in that area, and then the pair based against the higher of that swing area.
The last three hours of trading have seen a sharp rise to the upside. That move took the price above a swing area going back to May 12 through May 17 between 109.480 and 109.496. The high price reached 109.542, and backed off. The current price is trading below that swing area.
Can the momentum be sustained?
It will take a move back above the upper swing area (above 109.50) to keep the buyers happy and the sellers nervous.
Drilling down to the five minute chart below, the run higher off hourly support today has now seen two trend legs higher. The first leg took the price from 109.077 to 109.395. The correction off that high stall right at the 38.2% retracement at 109.274.
The second trend move higher based at 109.274 and moved up to 109.542. So far the 38.2% retracement of that move has stalled the fall near 109.44.
If the price holds that retracement, the buyers remain in full control. The sellers are not winning. And we should see another run toward the highs.
If it is broken, and the 50% of the last move to the upside is also taken out near 109.40. There could see the more downside probing as traders react to the intraday trend move failure. It may not be the end of the world, but it gives buyers cause for pause about the strength of the trend momentum.