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USDJPY corrects lower with the corrective low testing a July swing area

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Traders will be eyeing the 109.97 to 110.027 area for support

The USDJPY raced higher on Friday after the better than expected jobs report with the high reaching 110.35. That was just short of a swing area near the end of July extreme between 110.38 and 110.42.  

Traders will be eyeing the 109.97 to 110.027 area for support

The inability to extend above that level in the early Asian session, has led to a wandering to the downside today. The London morning session low reached 110.038.

Looking at the hourly chart, the 109.97 to 110.027 area was a swing area between July 21 and July 28 before the price started to step lower (ultimately reaching the low from last week at 108.715).  The low today at 110.038 stays above that swing area above and below the natural support at at 110.00.  

Staying above that area today will keep the buyers more in control, while a move below would likely lead to more downside probing. The next targets would look toward 109.907 (high from July 30), the 38.2% retracement of the move up from last week’s low at 109.725, and the converged 100/200 hour MAs and the 100 day moving average or near 108.63. 

For now, the higher support near 110.00 is holding.  Continue to do that, and we should see a resumption of the upside momentum seen on Friday. 

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