Floor held yesterday and into today giving the buyers the go ahead to move back higher
The USDJPY continues it's ups and downs.
Apart from a failed break higher on Monday (that ended up stalling near the key 100 day MA at 107.497), the price has been trading in a 107.44 high to a 106.629 range. Yesterday - and into today - the pair tested the low extreme, stalling just ahead of the extreme area at 106.66 (see lower yellow area and green numbered circles). The low yesterday reached 106.672. The Asian session low today stalled at 106.705 before the sellers turned to buyers and started to move higher.
Currently, the price is trading at 107.04 and is moving closer to topside resistance defined by the
- 200 hour moving average at 107.09,
- the 50% retracement of the range since July 15 at 107.094 and
- the 100 hour moving average at 107.116.
That cluster of resistance should give traders cause for pause with stops on a break above.
Recall yesterday in the Asian session, there was a low of that bounced off the 2 moving average levels (see chart). Later in the New York session, the break below the moving averages (and an upward sloping trendline) opened the door to the downside. Sellers jumped on the break and pushed the price to the lows (over the next 5 hours).
