The USDJPY tumbles lower in trading today but is finding dip buyers near a key support.

The USD/JPY moved lower during the early Asian session, breaking below a critical swing area between 154.77 and 154.967. It also dropped beneath the 38.2% retracement level of the December rally at 154.939, which shifted the bias further to the downside. During the European session, corrective price action encountered sellers near this resistance area.

In the early US session, bearish momentum picked up, pushing the price toward the next key support at the 50% retracement level of the December rally, located at 153.736. Notably, this level acted as support during Monday’s session when stock markets fell sharply, with USD/JPY bottoming near this point before rebounding. Today’s low reached 153.825, just 10 pips shy of the key support level, indicating sellers are mindful of this area.

On the upside, keep an eye on 154.47 as a potential resistance level. If sellers hold the line here, the downside bias is likely to remain intact.

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