But, 100 hour MA might have a say as support below
The USDJPY recovered from earlier losses (stock worries?) and rallied strongly (no stock worries as stocks rebounded?).
Technically, the pairs move to the upside has taken the price back above the 100 hour moving average (blue line in the chart above). Last Wednesday (on September 2), the pair successfully tested that moving average level, and fell back down. Before that day on August 31, the price fell below the 100 hour moving average and stayed below).
So what was once resistance, now becomes support. The 100 hour MA is currently at the 119.685. Look for support buyers to lean against the level on dips and traders will then be watching to see if the stock gains can hold their side of the bargain. The implications is that if stock markets stabilize, the "story" might shift more convincingly toward a tighter Fed and higher US dollar. .
ON the topside, there is some work to be done as the 200 hour moving average (green line in the chart above) has successfully held resistance on the first look. That MA comes in at 120.190. The high for the day extended to 120.22 before slowing the rise.
The pair sits between the 100 and 200 hour MAs looking for the next break. It may be the stock market that casts the next vote, but the buyers currently hold the advantage with risk defined and limited by the 100 hour MA.
