The USDJPY is down for the 5th consecutive day. Over that time period, the pair has moved over 650 pips. That’s a big move in a short period of time. In the process, the price has moved below a upper topping trendline on the daily chart at 139.029, and moved down and low the 38.2% retracement of the move up from the 2023 low to the 2023 high at 138.248. The low for the day reach 138.146. The current price trades at 138.23.
Also in play on the downside on the daily chart is a key swing area that comes between 137.50 and 138.139. That area has been a resistance area and support area going back to August 2022.
If the market is oversold, the price can continue to get oversold but the pair is approaching some key technical levels that may give traders some cause for pause between 137.50 and 138.248. Be aware.
The above video outlines these views.
USDJPY on the daily chart