Down and up day
The BOJ will release their monetary statement in the new trading day. No change is expected. Eamonn has all the thoughts on what to expect HERE.
Technically, the price of the USDJPY moved above the 100 day MA (for real) on Wednesday. The price moved above the MA level on Tuesday, but that break failed.
Today, the price has stayed in a narrow 40 pip trading range. The 22 day average is 69 pips. So the market is content to waffle today.
The waffling is happening near the highest level going back to February 8th, but the high for the year was up at 113.38, so with the price at 109.32, it is well off that high.
What are the key levels through the decision?
The key level below is the 100 day MA. That MA comes in at 108.90. The decision rule is simple for traders- move below is more bearish. The break higher would have failed. The next target below would be the broken 38.2% at 108.46. A move below that will look back toward 107.895.
On the upside, the 50% of the move down from the November 2017 high comes in at 109.664. Above that and traders will target the 110. 248 level. The price has not traded above the 200 day MA since January 11th.
Those are the key levels to eye. Look for a break on any surprise news or momentum run. Right now the bulls took the price above the 100 day MA. So I give the nod technically to the bulls.
