USDJPY chops below a topside trend line

Technical Analysis

Author: Greg Michalowski | usdjpy

Trade above below a swing area between 105.20 and 105.257

The USDJPY has chopped higher in trading today after a lower trendline support line held in the early Asian session (see green numbered circles).   

Trade above below a swing area between 105.20 and 105.257_

The moved to the upside saw the pair move up to test another trendline (see blue numbered circles). That trend line stalled the rally (see blue numbered circle 6).  That trend line currently comes in at 105.31. 

The price has moved lower, but chops around a swing area between 105.20 and 105.257. The market seems to be unsure of the next break.

On the topside, a move above the trendline at 105.31 and then the high for the day at 105.338, would tilt the bias more to the upside with the 100 hour moving average at 105.41 as the next target to and through

If the price can hold below the trend line at 105.31, and move below the 105.20 and stay below, the sellers would likely make a push toward the 50% of the move up from the September 21 low at 105.049. The break below that level and staying below would be eyed by traders.

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