USDJPY sellers this week tested the 38.2% retracement target, stalled and reversed.

The USDJPY last week, moved up to test a key target on the daily chart near 158.88. Sellers leaned and pushed the price off those levels into the close a week ago today.

This week, the price of the USDJPY has stepped lower after peaking on Tuesday near the high of a swing area at 158.10.

The pair moved below and away from a cluster of moving averages including the 100 and 200-hour MAs and the 100-bar MA on the 4-hour chart.

The selling continued yesterday and into the Asian session today stretching to a key target area outlined in earlier videos this week. That area was defined by the 38.2% retracement and swing area going back to December 18. Sellers turned to buyers and the rally today has started.

What now?

The price over the last few hours has now moved to and through a swing area and low of the up-and-down trading range going back to mid-December. That area comes between 155.94 and 156.219. That area is now a close support going into the new week. If the price can stay above 155.94, the buyers are in control. The 100-hour MA at 156.65 is the next target followed by the 200-hour MA at 157.38.

Conversely, move back below 155.94, and the sellers should restart the probing with the 38.2% area as the next key target.

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