Market waffles in 24 pip range
Let's call it like it is...The USDJPY is reactionary to headlines but the NY range is still modest at 24 pips.
The initial spike higher was in reaction to the WSJ article that said the tariffs may be delayed but no decision was made. That sent the price initially higher to a high of 108.75, but then moved back down as traders realized it was really nothing new. Also helping the sellers was at the high the price tested a topside trendline and held below that level.
The US stocks recent move back into positive territory helped the pair move back higher off the low at 108.52. The more recent headline that WH economic advisor Larry Kudlow could not confirm that tariffs will be delayed, is now led to a reactionary move back to the downside back away from the topside trend line. That is essentially what the Wall Street Journal article said anyway.
The fact of the matter is that:
- The price remains below the topside trend line.
- The price is above and below its 100 hour moving average at 108.678.
- The price remains above recent swing lows at 108.474 and the double bottom at 108.422.
If the pair is to break out, it needs the price to get above the topside trend line at 108.74 and stay above, or move below the recent lows and double bottom at 108.474 and 108.422 respectively.
Until then, we are just seeing choppy, reactionary price action.
