The USDJPY is higher but stalls at swing area

Technical Analysis

Author: Greg Michalowski | usdjpy

Buyers and sellers battling it out

Yesterday, the USDJPY fell below an upward sloping trend line and the 100 hour MA at the 109.06 area. The price rallied back toward the 100 hour moving average in the NY afternoon but backed off again. 

The USDJPY on the hourly chart
Today, the price spiked above the 100 hour moving average and has remained above. However, that old trend line proved to be a resistance area at the highs. The swing high from October and early November also stalled the rally (see yellow area).  

So  traders battle between the resistance above defined by the swing area up to 109.28 (the underside of the trend line is higher now) and the 100 hour moving average below the 109.10. 

Holding the 100 hour MA and/or cracking above the 109.28 level should solicit more buying with the underside of the trendline at 109.36 (and rising) and the double top highs at the 109.47-48 area as the upside targets.

If the sellers against the 109.28 area can push the price back below its 100 hour moving average again (at 109.10), the 200 day moving average at 108.997, and the 38.2% retracement at 108.87 and rising 200 hour moving average at 108.793 become the targets.

Bulls and bears are battling intraday.

Taking a broader look at the daily chart, the price action is trying to stay above the 200 day moving average at 108.997. The last 6 trading days has traded above that moving average each of the trading days. The problem is that upside momentum above the moving average has been somewhat limited. The swing hi going back to August 1, 2019 came in at 109.31. The 61.8% retracement of the 2019 trading range is at 109.352. The high today stalled below both those levels. IF the bullishness from being above the 200 day moving average is to take hold, there needs to be a momentum break above that area. A move above will target 109.696 and then the topside trend line at 110.11 currently.

The USDJPY on the daily chart is above its 200 day moving average

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