The USDJPY has been moving higher today,continuing the up and down trading seen over the last 7 trading days (see chart below and post from yesterday). Today, the price low for the day tested the lows from Wednesday. When the price could not get below that support, the distrusting market simply gave up and started the rally back higher. Distrust of moves lower or higher often becomes the pattern for traders -until that pattern is broken. So the price moved above the 100 hour MA (as has been the pattern) and that inspired a reaction back higher. The price held the 100 hour MA on the correction and bounced (another pattern – see blue MA line).
So now the pair sits above an area I have eyeballed as a level of prior highs and lows (see red circles between 108.98-109.09). Stay above, and there is a chance to extend the range higher before the weekend. Move below, and call it a day and enjoy your weekend. The third option is DON’T DO ANYTHING as it can all wait until Monday (and we will be looking for better things next week). The call is yours. I personally am thinking about the weekend videos and sitting this dance out.
PS Longs from below (who want to keep the position – the bias is to the upside again) should simply use the 100 hour MA as risk now. The pattern is if a break fails, it is time to go the other way.
Once again. the USDJPY tries the upside…..