Looking at the USD/JPY chart, we can see its climb from 121 on Mar. 25 to the 123.3 range, retracting to the 121.4 temporarily and consolidating and then rallying well into the 124 range, managing to reach as high as 125 temporarily.
Since then, it experienced a retraction down to 123, forming a temporary support. Early on yesterday’s session, it couldn’t hold onto the 123, and we saw its breakdown, falling into the 122 range and finding support around the 121.5 range. It was last found trading at the 121.7 range having the closest support 121.5 range and closest overhead resistance at the 123 level.
Today we can expect to move close to 121.5 and possibly below its support level as the short-term momentum appears to be temporarily negative. However, if it manages to hold at the current level, a move towards the 123 overhead resistance can be expected.
