The USDJPY did all the right things on the move lower. It fell below the trend line. It fell below the 100 hour MA (remember the price has only had 6 or so closes below the 100 hour MA going back to August 29th).
However, like all trades, it could not get to the next target at the 50% level (at 108.124). The subsequent rally, has led to a rally back above the key 100 hour MA and a retest of the broken trend line.
The move back above the 100 hour MA puts the buyers back in control but given the down and up characteristics of the market, the price has a chance to consolidate as sellers and buyers sort out the next move for the pair. Nevertheless, if I were to have to be one way, I give the buyers the benefit of the doubt but it is a cautious buy ( stay above the 100 hour MA ).
Technical Analysis: USDJPY tests the underside of the broken trend line after failing on the look below the 100 hour MA.
The next target on the topside, is the 109.168 which is the double top from yesterday’s trading and then the high for the last 6 years at 109.448. Above that, traders will be starting to eye the 110.00 level and then 110.67 (high from 2008 year).