February 21, 2025 at 02:19PM
The USDJPY moved sharply lower yesterday, testing the high of a key swing area between 149.08 and 149.39, with the low reaching 149.39. In the Asian session, the price dipped further to 149.27, pushing deeper into the swing area and testing the 50% retracement level of the move from the September 2024 low to the January 2025 high. Although the price came within five pips of this key level, buyers leaned in, triggering a push back to the upside—confirming key support held.
On the topside, 150.913 now serves as a key bias/barometer for buyers and sellers. This level, which formed a double bottom two weeks ago, also aligns with lows from December 12. If the price moves toward 150.913 and sellers step in, the recent rebound remains a corrective move. However, a break above 150.93 with sustained momentum could confirm a bottom, opening the door for further upside.
Holding the 50% retracement level was a critical technical move. Now, traders must decide the next steps—either a continuation higher or another test of support.
If the price moves toward that 150.913 level and finds willing sellers, this corrective move off of key support is just that – a corrective move. A rotation back to and through the 50% is a possibility going forward.
If the price moves above 150.93 and stays above, the low may indeed be in place which case there would be room to roam back to the upside.
Holding the 50% retracement was a key technical move. Now it is up to traders to decide what next going forward.
This article was written by Greg Michalowski at www.forexlive.com.
