Pairs price hangs around the level. PPI a bit better but MA holds the line
The USDJPY continues the battle with the 200 day MA at the 120.80 level. The last 3 trading days has seen the price move above and below the level. Each move higher has been rejected by the end of the trading day. It is not like the price goes above the line by a few pips and fails. On Wednesday the price peaked a 121.19 and yesterday the highs (and there were 2) came in at 121.28 and 121.319. The 200 day MA comes in at 120.806. Those breaks should see more downside reluctance but it has not.... Today the high was a little less robust at 120.96 before coming back down.
The US PPI was better than expectations but the price peaked at 120.81 so far (right on the MA line). Buyers need a break and run and are still looking for it but are finding willing sellers against the line now..
Support below comes in at 120.37. This is the 38.2% retracement of the move up from the September 8 low (the trend leg started there). The low for the day stalled at this level. The range is only 61 pips. vs 135 average over the last 22 trading days.