USDJPY breaks higher and moves toward the 38.2% retracement on the daily chart

Technical Analysis

Author: Greg Michalowski | usdjpy

38.2% comes in at 105.358

 Yesterday, 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).

The "give" was to the upside. The buyers entered and pushed the pair above the trendline, and ultimately above the high price from Tuesday's trade at 105.168. The doors open for further upside. Stay above the previous high keeps the bowls firmly in control.. 

38.2% comes in at 105.358
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.

USDJPY on the daily chart
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).

Will the buyers be able to kick the price through the next level, or will sellers lean? Either way if the price is able to get above the 38.2% retracement there should be some additional stops/upside probing.
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