The USDJPY continued the shuffle to the 110.00 peak level (see weekend VIDEO outlining the key hurdles for the USDJPY in trading this week)

On Thursday last week, the high reached 109.34. On Friday it got up to 109.52. Yesterday the high price made it to 109.73, and today (so far) the high has reached a peak of 109.835 level Slowly the pair moves higher but I will say the climb is becoming harder and harder. The prior days showed gains to the highs of around 20 pips. Today, the gain is only 10 pips. Is the market getting tired?

2014-09-30_10-23-19

Looking at the hourly chart above the pair has been in a trading range over the last 9 days, with 109.52 as the high water mark (see chart above).

Both yesterday and again today, the price has moved above this level. Yesterday, the move failed and the correction took the price down to the 109.12-18 area where there are a lot of highs and lows and the 100 hour moving average is found(blue line). This area is a key area going forward so take note.

Today, the price move above the 109.52 level once again took the USDJPY to new 6 year highs, but the price is back down testing this key support level. This should be support for the buyers. Stay above and the climb to 110.00 can continue. However, if the price moves back below,and stays below it would be another failed break and we should see sellers/profit takers look toward the 109.31-35 and then the important 109.12-18 area.

Test time for the buyers (shorts still hoping for some love).

PS Please take note. The green line in the chart above represents the 200 hour MA. The climb higher took the price above the 200 hour MA on August 18th. The price has not been below that MA since that time. That is a LONGGGG time. The line is moving higher with the trend and currently is at the 109.00 level. This moving average should be a key technical level going forward. One day it will break back below, but until then, it is hard to officially call any end to the trend higher in the USDJPY.