200 hour and 50% at the top. The 100 hour MA and swing low from July 24 below
Yesterday, the USDJPY bottomed against a lower trend line (see red circle 4). That level was outlined in the post here as a support level (CLICK HERE). The price moved off that low and back above the downward sloping trend line, and the sellers turned to buyers.
Today, that rally continued higher in the Asian session. In the process, the price has moved back above the 110.618 swing low from July 24th. It has stayed above that old swing low (see blue circle 4). That level and the 100 hour MA at 110.68 is providing technical support.
On the topside, the pair got close to the 200 hour MA (green in the chart above) at 111.01. The 50% retracement is at 111.049. The high price stalled just ahead of that area at 110.978.
The boundaries are in place. The market is looking for a break with momentum.
Drilling to the daily chart below, on a move lower, the 110.10-23 is home to a number of swing levels. Yesterday, the pair moved below the area, but closed above at 110.37. Today the low price reached 110.254. Are traders leaning against the level? Seems that way. It will be an area to get and stay below on a move lower.
On the topside, we remain below the 50% of the move up from the April low at 111.307 and the 100 day MA at 111.417.
