Held resistance against the 61.8% retracement/ahead of the high from last week
The USDJPY has seen a move higher today help by better risk on sentiment.
Recall from Friday, the price came down and tested its 100 hour moving average (lower blue line) and found support buyers. Today in the early Asian session, the price retested that moving average line and found buyers once again. That set traders up for a move higher.
When the price started to extend and stay above the 200 hour moving average (green line), buyers made another push to the upside that saw a swing area between 110.02 and 110.06 and a test of the 61.8% retracement of the move down from the August 11 high at 110.149.
Last week, the price did extend above that retracement level but could not sustain momentum.
We are seeing a rotation back down toward the 110.00 level (and near the lower end of the swing area – see red numbered circles). In the short term if that area can hold support, the buyers remain in control. We should see a retest and potential break toward the high from last week at 110.222.
Move below the 110.00 level and the rising trendline near 109.91 and the 200 hour moving average at 109.865 would be the next targets. Will below the 200 hour moving average and the buyers will be disappointed with the move, and tilt back to the upside today.
