Got within 5 pips of the key MA line
The USDJPY tested the 100 day MA at 111.83 earlier in the trading day (the high reached 111.78) and the price backed off. Profit taking and selling against the key resistance level as risk could be defined and limited.
The fall has taken the price back below the 50% of the move down from the May high at 111.576, and the 200 bar MA on the 4-hour chart at 111.493. The low reached 111.30.
The 38.2% of the move up from the Friday low (the last leg higher in the pair) comes in at 111.345. The swing high from Friday reached 111.41. With the 200 bar MA on the 4-hour at 111.493, the pair is trading all around that area. However looking the 5 minute chart below, the pair is trying to keep a lid on the pair against the 200 bar MA now (see chart below).
Technically... the pair struggled to push higher and gave up a modest amount of the recent move higher. It is not the end of the world for the buyers, but the waters are a bit muddy with the price action and the technical tools. The 111.49 should be eyed for intraday clues (bullish or bearish). The 111.34 (38.2% should also be eyed). It is more of a battle time for the pair.
The 2 year yield is up less than 1 bp. The 10 year is down less than 1 bp.
US stocks futures are little changed.
