Stalls just ahead of the 200 hour MA
The USDJPY rallied as stocks moved higher on increased potential for more easing out of the ECB. However, some of the froth has come out, and the pair has move back lower has your stock trading gets underway.
The move higher, nearly erased the fall from the Asian Pacific peak. That high stalled just before the 200 hour moving average (green line in the chart above currently at 117.483). The high price post Draghi also found sellers against the 200 hour moving average.
US stocks are opening little changed (the NASDAQ is down 16 and S&P is unchanged). The USDJPY may get clues from their movement today.
Typically, the holding below the 200 hour moving average is signaling a key resistance area that would need to be broken and stay broken IF the price is to go higher from here. On the downside, discounting the volatility from yesterday, the 116.500-65 might be a target level to eye.
Looking at the daily chart, yesterday's low tested some pretty important swing lows between 11 5.52 and 116.09. The low price extended to 115.96. On the topside, the last two or so weeks has the price trading below topside resistance at 118.22 – 118.50 (also a bunch of swing lows) That is the key level above as the market consolidates at lower levels.
