Yesterday the price of the USDJPY moved above the 200 day MA and closed above the level on comments from Japan/G7 officials. Today that MA comes in at 78.64. The low trade came in at 78.60 in the Asian session, but the dip was shortlived and the price moved steadily higher.
In the NY session, the price dipped below trend line (79.04 currently) and 100 bar MA (79.06 currently) on the 5 minute chart, but has recently moved back above these level. At the lows, the price also tested the 200 hour MA (at 78.90) and midpoint of the most recent move down (see hourly chart at 78.89). This too is a bullish sign for the pair. Traders should look to take a cue from the failure on the 5 minute chart, and holding of the 200 hour MA, to give cause for a continuation of the move higher (risk 78.89)
The highs for the day at the 79.269 is the next target above, with 79.55-65 (highs from May 29th/30th) above that. A key longer term hurdle/target – if the bullish bias continues- is 80.09. This is where the 100 day and midpoint of the 2012 USDJPY trading range are both found.
