High also stalls near 107.00
The USDJPY has extended to the highest level since July 23 in trading today. In doing so, the pair has tested a topside trend line at 106.98 AND the 50% retracement of the range since the June high. That level comes in at 107.012. In between sits the natural resistance at the 107.00 level. The high price today reached 107.009 and backed off, we currently trade at 106.79.
Yesterday in this post, I outlined that area saying:
Needless to say, getting above 106.66 would be another step in the bullish direction with the next major stop coming near the 107.012 level. That is near a downward sloping trendline on the daily chart along with the 50% retracement of the move down from the June high. The 107.00 level is also a key natural resistance level.
This stuff can really work. Resistance target was found and stalled the pairs rise on the first look.
What now?
Drilling to the 4 hour chart below, the move to the upside was helped by the break of the swing area, 200 bar MA on the 4 hour chart and the 61.8% retracement (of the move down from the July 1 high) came in at 106.61 to 106.705. The low (since peaking) came back into that area at 106.682. If the price can stay above that area, the buyers hold more control. Move below, and we should see the tilt move back to the downside.
The support and resistance areas are set. Support down to 106.61. Resistance up at 107.01. Traders will be looking for the next shove.
