USDJPY runs into overhead resistance. Backs off a little.

Technical Analysis

The 109.02-146 is overhead resistance

The USDJPY has waffled up and down today as the “market” digests overhead resistance at the 38.2% retracement of the move down from the April 24 high at 108.918 and swing resistance at 109.022 to 109.146.  That area was home to swing lows going back to May. It was broken on May 31 and has not seen the levels since (see yellow area and red numbered circles).  

Traders looking to sell the USDJPY would look at this area to lean against with stops on a move above.

On the downside, the 108.525 was the high from early July.  A move below that would give the sellers more comfort.  

Before that level, the 108.72 was the close from yesterday.  The NY session low reached to 108.75.  Move into the red, and that may be enough to tilt the intraday sentiment more to the downside for a retest of the 108.525 area. 

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