USDJPY breaks higher and moves toward the 38.2% retracement on the daily chart
38.2% comes in at 105.358Yesterday, the USDJPY traded in a 18 pip trading range for the entire day. At the end of day, the pair was trading within a converging pennant formation. Something had to give. (SEE POST from yesterday HERE).
Take a look at the daily chart below, the price is currently up testing the 38.2% retracement of the move down from the June 2020 high to the January 2021 low. That level comes in at 105.358. Get above that level and traders will be eyeing the 200 day moving average at 105.576. The last time the price traded above that moving average was back on June 9.
Key test now at the 105.358 level. That is one of the minimum objectives IF the buyers are to take more control from the sellers. Getting above the 100 day moving average last week (on Friday) was the 1st step. If the 38.2% retracement can be broken, the 200 day moving average will be the 3rd step in the process (and then the 50% retracement).