US housing starts are strong

The US housing starts and building permits for the month of November were strong, and that help to push the USDPJY to new session highs.

Looking at the hourly chart below, the pairs price moved up to the 200 bar moving average on the 4-hour chart of 112.76. The high price reach 112.779 and backed off a bit on the first test. The last two tests of that moving average line saw sellers leaning.

A break about today will look toward the 112.886 level. That is the 50% retracement of the move down from the December high. The 200 hour moving average comes in at 112.964 and would be a another upside target.

Failure to extend above the 112.763 level could see traders who are long exit and push the price back toward the 100 hour moving average of 112.583 over time.

Key level for the USDJPY. Can the buyers keep the upside momentum going or will they look to take profit against the key resistance target?