Friday the technical levels gave the pair a push higher...
The USDJPY has been moving lower in trading today. Yields are lower. The stock markets look to take a breather. Technical resistance held above and that gave traders a reason to sell after the rise up from the 100 day MA support low on January 2nd.
The pair today moved up to a early London/European session high that tested (and even broke briefly) the swing highs from Dec 26 and Dec 27). That spike high failed however, and sellers jumped on board - taking profit on their longs.
The subsequent fall saw the price move below the 61.8% at 113.027 and down to a low of 112.877. The 50% of the move down from the December 21 high to the Jan low (which was just before the 100 day MA) comes in at 112.84 and the 200 hour MA is just below that at 112.825. I would expect that those levels will give sellers a cause to pause on the fall. Remember on Friday, those same two technical levels were responsible for a push higher in the Asia Pacific session. I expect respect on the retest today.
If the pair is going higher, the 113.00-027 will be eyed. After the employment report on Friday, the pair bottomed at 113.00. It retested that low near the close of trading on Friday (may have been liquidity induced low print though). Today the price fell to 112.99, bounced a little higher, before breaking and heading toward the key support area at the 112.825-84 area.
