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The low after the jobs report, stalled at the 61.8% retracement level
The USDJPY initially moved sharply lower after the jobs report, and found support buyers near the 61.8% retracement of the move up from the April 23 low. That level comes in at 108.32.
The subsequent rally back to the upside ended up finding sellers near the lows from Monday and earlier today between 108.889 and 108.933. The high price reached 108.88 and reversed.
Staying out of the earlier week range, increases that ceilings importance. Stay below and the sellers feel ok.
The pair is currently trading above and below the 50% retracement of the same range higher at 108.582. The pair is consolidating and seems to be waiting for the next shove as traders still digest how this report will pan out longer term (I don’t think anyone knows for sure).
What we DO KNOW is that the floor before the report at 108.889 to 108.933 is now the ceiling. Moving below the 61.8% at 108.32 would give sellers more control/confidence. Move back above the ceiling and the bias tips back to the upside.