The July 2007 high getting closer
The USDJPY has continued the trend move to the upside helped by better US data. The July 2007 high at 123.66 is approaching. The high price for the day has now reach 123.30. Above that level the June 2007 high comes in at 124.14. Other than those target levels there is little in the way of technical levels above.
When there is not a lot of resistance, traders can look back instead.
Looking at the 5 minute chart, the pair has been stepping higher in a trend like move in trading today (fast, directional and a larger trading range). When this happens, I like to measure corrections to see if the buyers can remain in control. As long as a price on a correction remains above the 38.2% to 50% of the last trend leg higher, the buyers remain in control.
Earlier in the New York session, the corrective move got close to the 38.2% retracement at the 122.429 level, the low came in at 122.476. This most recent move higher has as support 122.89 to 122.99 (see yellow area in the chart below). Look for buyers on dip against the level now. If they want to continue to squeeze, they should show up in that area. ON a move below, it does not necessarily reverse the trend, but it does muddy the water a bit going forward i.e., will look for more consolidation trading. Right now though, the buyers remain in control.
