Forex technical analysis: USDJPY stalls ahead of swing levels from Jun/Jul

Technical Analysis

Author: Greg Michalowski | usdjpy

Break above topside trend line failed. 200 day MA key support now at 112.15

There is a lot going on in the USDJPY chart.

The 4-hour chart below shows that the pair moved above a topside trend line (currently at 112.52) yesterday and into today.  However, the break and momentum approached another key area defined by swing highs and lows going back to June and July.  During that time the price broke higher, retraced and formed a floor at 112.81-93, only to break that floor and trend lower. 

The rally and follow through buying today got to a high of 112.711 before rotating back lower over the last two 4-hour bars.  We currently trade back below the broken trend line at 112.52 (and moving higher).  A move above that trend line would be eyed by buyers/bulls now.  

On the downside, the 200 day MA was broken on the run up yesterday at the 112.15 area.  Today, the price has been able to remain above that key MA line.  Look for buyers against that level on a dip today. The low in the London session reached 112.24.

So good resistance above at 112.81-93 and good support below at 112.15.  Looking at the 5-minute chart below, we currently trade right near the 200 and 100 bar MAs (green and blue lines) and right near the middle of the trading range. The buyers and sellers are battling each other between the technical levels.