The 50% of the move up from the September 18 low comes in at 105.049.
The USDJPY is moving to a new session low and in the process is getting closer to the 50% midpoint of the move up from the September 18 low. That level comes in at 105.049. The price is also dipping below a lower trendline (see red numbered circles) at 105.12.
The run lower today got a kick start after the swing high in the early European session stalled against day topside trend line (see green numbered circles 5). The inability to move above that trend line today gave sellers confidence to push lower (the line also held in trading yesterday at green circle 4).
The run lower is also pushed below swing areas at 105.23 – 25 and 105.167 – 20. Stay below those levels now would keep the sellers more in control. Move above muddies the water a bit.
If the 50% retracement level can be broken today, the next downside target would look toward the 104.92 – 94 swing area. That area was defined by swing lows going back to September 23 and October 2 (the lows for the month of October).
Sellers are in control and making a play below support levels. Can they keep the pressure on and stay below the 105.25 level in trading today?