The USDJPY fell down to the 50% of the weeks trading range at the 78.596 level and found the support buyers (see prior post). The price is now back above the 100 and 200 bar MAs (blue and green lines) on the 5 minute chart and is looking to make a run toward the day’s high. Support now comes in at 78.81-84 (78.81 is the days midpoint.78.84 is the 200 bar MA on the 5 minute chart).
Looking at the daily chart below, the 79.17 level is the 200 day MA (see green line in the chart below). This is the first major upside target for the pair. The price has not been above the 200 day MA since July 13th. Look for sellers on the 1st test with stops on a move above. If the 200 day is breached the next key target would be the 100 day MA (blue line). The price in the USDJPY has not closed above the 100 day MA since May 22nd.
