The pair did make new week highs
The USDJPY tried earlier this week two move outside of a consolidation "Red Box" that confined the pair since October 12. The low of that box came near the 38.2% retracement at 113.21. That level was broken on November 8, and after a quick corrective move to the retracement area near the low of that Red Box between 113.21 and 113.28, the price rotated down toward the 50% midpoint of the move up from the October 4 low at 112.754 (the low price reached 112.719 just a few pips below that midpoint level).
Yesterday, the dip buyers leaned against the 50% level and after breaking back within the red box and moving above the 100 and 200 hour moving averages (blue and green lines), the buyers assumed more control and pushed up to a downward sloping trendline before consolidating into the close.
Today, the price action is consolidating in up and down trading. The range for the day is only 32 pips (versus a 22 day average of 65 pips). The price extended above the topside trendline to a high of 114.148, but rotated back to the downside and has found support near 113.87. A another high reach 114.128, and another swing low just reached 113.886.
Traders are lining up with 114.148 and 113.87 as the high and low borderlines.
- On a move lower, the 200 hour MA continues to be a key target support level to stay above near 113.646.
- On the topside break, the next target area comes between 114.20 and 114.307 (see red numbered circles).
PS, the price is breaking lower as I type, and in the process has extended the trading range for the day. The 200 hour moving average remains a key support level yesterday the corrective low reached 113.72.
