The USDJPY has seen more up and down price action today continuing the price action seen on Friday. The pair did move below the low from Friday’s trade, but found support near the low from January 14 at 113.474. It dipped briefly below the level to a low of 113.464, but quickly rebounded.
The subsequent move back higher saw the pair move into a topside swing area between 113.954 and 114.028 (see red numbered circles).
Sellers leaned against that area and pushed the price back down toward another swing area between 113.596 and 113.629. The price has been able to stay above that area. A break below is needed to solicit more selling with the lows near 113.47 as the next major target (obviously). Conversely, stay above the lower swing area (green numbered circles) and a rotation back toward the red numbered circles, would be the next target.
The USD and the JPY can both be safe haven currencies. That dynamic can neutralize the price action for this pair during volatile bearish price action in the US stock market. That is what we are seeing in the up and down price action over the last two days. Until it gets out of this bearish bias, we can expect more of the same going forward.