USDJPY chops in up and down trading today

Technical Analysis

Author: Greg Michalowski | usdjpy

Stays below 100 hour MA

The USDJPY chops around in up and down trading today.   There is no discernible trend today.  What I can say technically is that the two peaks on the hourly chart has stayed below its 100 hour moving average currently at 110.756 (so a bearish bias).  

Looking to the high yesterday, it stalled at the high from Friday (red numbered circles). Looking at the highs from last week, there was a double top (green numbered circles).

Stays below 100 hour MA
So there have been a slow move lower with resistance targets holding at lower levels (the last being the 100 hour MA).  

Now.... on the recent downside, the low from Friday and Monday stalled in a swing area between 110.474 and 110.525.  The low today in the Asian session fell below that level and failed.  

As I type the price is rebreaking that lowerswing area. Sellers are making a play, but will now need to stay below that area (and the 200 hour MA at 110.57).

The next downside target is not far away at the 50% retracement of the move up from the June 21 low. That level comes in at 110.410. Getting below that level would be another step in the bearish direction.

Summary: Sellers are making a play, but they are "slowing playing" their hand.  Nevertheless if the price canstay below the lower swing area (and the 200 hour MA at 110.57) and then get below the 50% retracement, that bearish hand playing may speed up a bit. 

Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose