Narrow range. 100 and 200 hour MAs in play.
The USDJPY has had a random up and down time of it so far today.
Technically, today the pair found support above the 200 hour MA in the Asian session (green line). Wandered up to the 111.58 area. That level was the swing high from March 23rd. ON Thursday last week, the level from broken on the way to the 38.2% retracement at 112.14. Later on Friday, that line was re-broken to the downside. Staying below keeps the sellers more in control. It also forms a head and shoulder formation.
The current price is back down toward the rising 100 hour MA at 111.28. The 200 hour MA at at 111.10. The 50% is at 111.147. The range for the day is a small 45 pips. The 22 day average range is 86 pips. So there is room to roam on a break.
The sellers are more in control after holding resistance above and the failure to keep the gains on Friday (stalling at the 38.2% in the process).
However you can say the buyers are equally in the game. The shorts are looking at those MAs and wondering "are there more sellers who can push the pair lower at this support area". So far buyers are holding support there. Yes it look like a head and shoulders but there have been plenty of H&Ss that fail to materialize too.
With US yields little changed and stocks little changes as well, there is not the other catalyst to push yet. Perhaps the data at and around 10 AM will give the pair a push. Be aware. There is room to roam (one way or the other).
