USDJPY runs lower and tests key swing area

The USDJPY is taking a run lower and in the process has moved to a swing area between 150.718 and 150.88. The level corresponds with an old ceiling going back to February and March. The price moved above the ceiling on March 19, and had one failed break below the swing level on March 21. Since then, the price has remained above this area.

A move below would open the door, with the low from March 21 at 150.25 as the next major target. Longer term, IF those levels can be broken, traders would have to target the 38.2% of the move up from the March 11 low at 149.87.

This is the key level in the short term that needs to be broken if the sellers are to be taken more seriously. Absent a break,, the correction is simply to the minimum support target.

This article was written by Greg Michalowski at www.forexlive.com.