Key bounce off support

The USDJPY moved lower in the London session and in the process broke back below its 100 hour moving average (blue line).

Key bounce off support

However, the selling did have a limit. That limit came in against the swing area between 109.047 and 109.074 (see lower yellow area and red numbered circles).

Looking at the hourly chart, that area was a ceiling on April 28 and April 29. ON the 29th the price broke above the level, but quickly reversed back below. On April 30, the price reestablish the ceiling (at red numbered circle 3) before breaking higher later on that day.

There were other support bounces against the area on May 3 and May 4 (red numbered circles 4, 5 and 6). Today's buyers leaned against the level (with stops likely below). Those buyers have now seen the price move back up to - and now above - its 100 hour moving average.

The next key target comes in at 109.48. That was near the high from both Tuesday and Wednesdays trade. Get above that level and traders will look toward the high from Monday (and the high for the week) at 109.693.

With the price now trading up to 109.373 (as I type) and in the process is moving away from the 100 hour MA at 109.274, intraday traders will want to see the price stay above that MA level (close intraday risk). If the price goes back below, it could lead to disappointment from the buyers, and a rotation back toward the key swing area between 109.047 and 109.074.

Buyers make a play. Let's see if they can keep the push going in the upward direction.