The USDJPY fell to a new low and in the process has traders targeting the key 200 MA at 104.622. The pair in the London morning session rebounded higher, but stalled at the 50 MA. On the way to the downside (looking at the hourly chart below) the price action saw the pair move below the 105.00 area (and a swing area just below that level), and another swing area between 104.816 to 104.851 (see yellow areas).
The lower swing area was home to the low on Tuesday and again from earlier today (where support buyers came in ahead of the Tuesday low). That area is now close risk for sellers. Stay below keeps the sellers more in control with the 200 hour MA the next key target. Move below and traders will target 104.46-50 and then the 50% retracement of the move up from the November 9 low at 104.424
The lower swing area was home to the low on Tuesday and again from earlier today (where support buyers came in ahead of the Tuesday low). That area is now close risk for sellers. Stay below keeps the sellers more in control with the 200 hour MA the next key target. Move below and traders will target 104.46-50 and then the 50% retracement of the move up from the November 9 low at 104.424
Trade closed: target reached