USDJPY tumbles but quickly rebounds

The USDJPY hit a downside air pocket after reaching another new high going back to 1990 at 154.76. That is getting close to what people think is a level that the Bank of Japan might look to intervene at 155.00.

Anyway the market quickly fell to a low of 153.896 but has since bounced back up toward 154.40.

Technically, the price low found support buyers near the 38.2% retracement of the last run to the upside (from the low price on Friday to the high price today). That 38.2% retracement came at 153.929.

In the morning kickstart video, I commented that with the USDJPY trading at the highest level since 1990, the sellers have to prove that they can take control. When benchmark target would be to get below the 38.2% -50% retracement of the last trend moved to the upside (see yellow area on the chart above).

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