US stocks little changed...
The USDJPY has dipped a little lower despite the slightly better Manufacturing PMI. The low in the NA session has moved to 105.86. The close from yesterday was 105.79. The current price is 105.94. The low got close to unchanged.
On the topside today, the 100 hour MA has been a ceiling for the pair. That MA come in at 106.224. The high for the day pipped up to 106.27. There were no hourly closes above the 100 hour MA.
In addition, the price stalled ahead of a resistance area I have earmarked between 106.23 and 106.43 (you can go back to May and see that area as a dividing line for bullish and bearish).
The ceiling at technical levels give traders something to lean against and they did it. The target below is also important. That is the 200 hour MA. The USDJPY has been above the 200 hour MA since July 11. Earlier today at the session lows it sniffed the level. We have not had a true test. That MA comes in at 105.62. If short sellers, want to see that level broken now. Get below and the there could be a further corrective move lower....
Fundamentally, I would expect dips to be bought. Expectations for increased stimulation in Japan is increased. That should keep the JPY supported. Hence why the upside levels are equally as important as the targets. They may hold today but in the future, they could give way and we could see increased upside momentum. The holding near the 100 hour MA, increases that levels importance going forward.
Taking a broader view, undermining any bullishness at the moment is the failure on the move above the 200 week MA this week. That level comes in at 106.68. ON the downside the 105.17-43 was old highs and lows from 2013 and 2014. The low this week stalled at 105.26. That area will be level to eye going forward.
