Remains wrapped in the weeks box
The USDJPY has decided to play it's own game. The pair rallied in the London morning session - it seemed more in reaction to failing after making new lows in the Asian Pacific session and going nowhere.
The rally took the price above the 100 and 200 hour moving averages (blue and green lines in the chart below) and the 100 day moving average (today at 119.228). The US GDP data put an end to that. However, the lows - one to 118.88 and one to 118.759 - failed to take the pair outside the 67 pip trading range that has confined the range for the week.
Will the pair join the fray?
Looking at the 5 minute chart, if you were to ignore the volatility from the GDP and just take a look at the move back down from the corrective high (see blue box in the chart below), the price trend is more to the downside. The lows continue to hold, but on the last corrective move higher. The 38.2% retracement and the 200 bar moving average on the 5 minute chart held resistance. If the sellers are going to exert some control and make a push through the low floor for the week, staying below this area would be a good technical test. If it cannot stay below, expect more up and down trading in the pair as it plays its own game - versus the dollar at least. That is a game I will want to watch for a break eventually, but not one to get into.
