The USDJPY made yet another new high in trading today. The price extended above yesterday’s high of 109.83 and moved the bar up to 110.07 before rotating back lower. The 110.00 level has been a target on the topside. So is the 110.65 price level which happens to be the high price from 2008. A move above that level would change the wording in posts to “the highest level in nearly 7 years”

Technical Analysis: The USDJPY moved to new 6 year highs in trading today moving above the 110.00 level in the process.

Technical Analysis: The USDJPY moved to new 6 year highs in trading today moving above the 110.00 level in the process.

Looking at the hourly chart, the price at the high stalled at a topside trend line connecting the most recent highs (see green numbers in the chart below). The momentum has not continued, however, and the price is trading below trend line support (blue circles) at the 109.63 level. The 109.50 level is another key level to eye (see red circles). This was a bottom on two separate hourly bars yesterday and was a high ceiling on late Monday and early Tuesday trade.

Overall, the USDJPY has been making new highs but struggling in the process. Traders seem to looking for low risk selling opportunities on moves higher (i.e. the trend line in the chart below at the green circle 3), but the corrections are finding support. Trend line support is trying to be broken now, but activity is not heavy. The 109.50 level and 100 hour MA (blue MA line in the chart below at 109.35) make it tough for big trends to the down side (they just keep on running into support levels). One thing of note: the 200 hour MA (green MA in the chart below) keeps on moving higher with the overall trend. The price of the USDJPY has not traded below the 200 hour MA since August 18th. Until the sellers can push below this level, the buyers remain in control. That control may be for 3, 6 or 8 hours at a time before the price rotates lower, but they remain in control.

Technical Analysis: USDJPY below trend line. Testing the low for the day and 109.50 support level.

Technical Analysis: USDJPY below trend line. Testing the low for the day and 109.50 support level.