Looking at USD/JPY chart, we can see a rally from the 129.5 level to initially basing around the 130.5 range and then soaring to its highest levels of the last decade, reaching as high as 131.25 momentarily on May 9. What followed was a retraction due to overextension, returning to the 130.5 level, and found support just below the 130 level.
Earlier in today's session, there was a spike from 130 to 130.75 but it didn’t last, leading to the fall to the 129.25 where it managed to bounce from, at least temporarily. It was last found trading in the 129.47 regions.
Today we can expect to move towards and below the closest temporary support level of 129.25 as the negative momentum is at play. However, if it manages to hold and consolidate at the current level, then a move towards the 130 level can be expected.
