USDJPY bounces off the 50% midpoint goal space. Is the underside in place?

The USDJPY moved sharply decrease yesterday, testing the excessive of a key swing space between 149.08 and 149.39, with the low reaching 149.39. Within the Asian session, the worth dipped additional to 149.27, pushing deeper into the swing space and testing the 50% retracement degree of the transfer from the September 2024 low to the January 2025 excessive. Though the worth got here inside 5 pips of this key degree, consumers leaned in, triggering a push again to the upside—confirming key assist held.

On the topside, 150.913 now serves as a key bias/barometer for consumers and sellers. This degree, which fashioned a double backside two weeks in the past, additionally aligns with lows from December 12. If the worth strikes towards 150.913 and sellers step in, the latest rebound stays a corrective transfer. Nevertheless, a break above 150.93 with sustained momentum may affirm a backside, opening the door for additional upside.

Holding the 50% retracement degree was a vital technical transfer. Now, merchants should determine the following steps—both a continuation increased or one other check of assist.

• If the worth strikes towards that 150.913 degree and finds keen sellers, this corrective transfer off of key assist is simply that – a corrective transfer. A rotation again to and thru the 50% is a risk going ahead.
• If the worth strikes above 150.93 and stays above, the low might certainly be in place which case there can be room to roam again to the upside.

Holding the 50% retracement was a key technical transfer. Now it’s as much as merchants to determine what subsequent going ahead.

This text was written by Emma Wang at www.ubaidahsan.com.



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