Lot of bull in the USDJPY chart.
The USDJPY yesterday tested and held near it's 100 day MA. The MA came in at 111.75 yesterday. The low did reach 111.679, but quickly bounced (the price was below the MA line for 6 minutes in total but could not develop much downside momentum. Bullish.
For candlestick traders, the candle was a hammer yesterday. The pair opened near the high, fell to a low and closed higher on the day. Today we are seeing follow through buying. That is bullish. The candle also engulfed the prior days candle and closed higher. Also bullish.
So on the daily chart, it is looking bullish.
Drilling to the hourly chart, the price action today stalled intially at the 200 bar MA on the 4-hour chart, but after some Trump volatility, that MA was busted to the upside and we started to see support buyers against that MA line (at 113.37 - see chart below). THe price has moved above the 61.8% at 113.70. That is close support for buyers/longs (other key support is the 50% and that 200 bar MA on 4-hour at 113.31-375).
The high today is testing the Jan 31/Feb 1 highs at 113.94-957. A move above will next target the 114.13/16 area.
The bulls are in control on the hourly chart above the 113.70 and the 113.31-37.
Drilling even further to the 5-minute chart, the pair has been marching higher, breaking MAs along the way and staying above it's 100 and 200 bar MAs too (at 113.64 and 113.38 currently). Staying above those MAs is more bullish.
So overall, the USDJPY is looking pretty bullish. Admittedly, we are looking to test some targets (on hourly) that may give some cause for a pause, but if you are tempted to short/sell/take some profit, be cautiously bearish and be sure to look for a move below the lower targets for comfort (like the 113.70 and the 100 bar MA on the 5-minute chart at 113.64). If it does not happen the bulls are STILL in control. Be sure to your stops on shorts firm too. The market is more trending after all and it can continue to trend.
