Tests the March 2nd low and stalls the fall
The USDJPY has cracked lower and in the process has tested the low from March 2nd at 105.245. The first test held. A break below will open the door for more downside. The bears are in control.
The low has held and we have seen double and triple bottoms turn the tide back the other way. That is in play now.
What might give the buyers even more confidence?
Drilling to the 5-minute chart below, the price fell below a lower trade line at 105.51 currently. The 38.2% of the move down from the London session high comes in at 105.523. A move back above that area would weaken the bearish technical stance a bit more. The water gets a bit more muddy.
There are other levels above that if taken back on a rebound, would weaken the bearish look (see chart below).
We have a double bottom...yes. But until the broken levels start to be taken back, the sellers remain in charge. I have to lean that way.
