Traders will eye the 50% midpoint of the July trading range at 110.357
The USDJPY based against the 200 hour moving average/38.2% retracement yesterday and into the Asian session today. That support came in at 110.05 (see green line in the chart below).
Holding the level, gave the buyers the go-ahead to push higher in the Asian session and that rally continued into the London session and NY open. The high price reached 110.583.
However, the last hour or so has seen the price rotate back to the downside. The current price trades at 110.407.
Traders will now be eyeing the 50% midpoint of the July trading range for support. That level comes in at 110.357.
That midpoint level was the high price from yesterday’s trade. On Thursday the price moved briefly above the level to an intraday high of 110.382 before rotating back below.
Hold the 50% retracement now, and the buyers can resume the run back higher. Move below and there could be some further downside probing with a trendline at 110.22 (and rising) as the next major target.