Break of lower trendline on the daily yesterday, is being taken back today
The USDJPY fell below a lower trend line on the daily chart yesterday at 107.41. Today the price moved to a lower low at 107.04, but support was found and the price rebounded. We are now trading back above the broken trend line at 107.38. Stay above today, willl give the dip buyers some joy.
Drilling to the hourly chart, the support found today was against a lower trend line at 107.04 (connecting lows from June 18 and yesterday). The bounce is above the 107.38 level (trend line on the daily – close risk for longs). The buyers have work to do if they are to be taken seriously. The 38.2% of the move down for the week comes in at 107.682. That would be the minimum if the buyer/corrective move is to continue.
Watch 107.38 below for clues (look for buyers against that level – a move below is not that great for buyers) . A move above 38.2% is needed for more upside.