The USDJPY has backed off away from the all important ceiling at the 107.35/37 area (see post from yesterday) after the weaker than expected US CPI data. The price decline has taken the price down toward the 100 hour MA (blue line in the chart below) at the 107.16 level (low 107.135). The price is finding some support buyers against the level as the battle continues with the ceiling above and the 100 hour MA below.
USDJPY tests 100 hour MA after testing the ceiling. Technical battle continues.
Yesterday, the pair tried on a number of occasions to move below the level. Finally when there was a break off PBOC and FOMC rumors (that they would keep the wording in their statement today), the price fell to the bottom trend line support and bounced from there. The move back above the 100 hour MA reestablished support against the 100 hour MA level and the battle between support at the MA and resistance against the ceiling continued.
The same battle is being fought today.
On a break below the 100 hour MA (see green circles in the chart above), the next support targets will be at recent lows (at 106.78/79), bottom side trend line (at 106.70 currently), and the 200 hour MA (green line at 106.56 currently). I am expecting another look below and test of lower levels.
A move above the high and it is new 6 years highs. Look for momentum on a new high, and the ceiling to switch to a support floor.
