The two week rally is unwound in a day…
The USDJPY recent low was back on July 18 at 107.205. Dollar buying took the price through th 108.987 high from July 10 and a topside trend line in the Asian session yesterday. The high reached 109.31.
Then things started to unravel.
The price first moved below the 109.00 level and remained below that level.
Later the price fell below the 38.2% of the move up at 108.507. After waffling above and below the 50% retracement, the Trump tweet, took the wind out of the sails of the stocks and the flight into the relative safety of the JPY was on. The pair tumbled low and did not stop until the price retraced the entire move up. The low reached 107.182, just a few pips below the 107.205 low from July 18. It took 21 hours to retrace the 9 day move higher.
Looking at the 4 hour chart below, the 107.53-557 is a swing area that is being tested in the Asian session on the modest bounce (see chart below). If that level can be broken, there is hope for more corrective possibilty.
Drilling to the 5 minute chart, the 100 bar MA on the 5 minute chart is at 107.594. A move above (and staying above) would be another modestly bullish (it is modest) development.