Stalls at 38.2% retracement
The USDJPY moved sharply higher after the greater than expected jobs gains. The price action took the price back above its 100 hour moving average at 108.82 and 200 day moving average at the same level. However, the 38.2% retracement at 108.919 has stalled the rally so far. A move above would be more bullish (see chart below).
The best case scenario for the bulls is for buyers to hold this support area at 108.82 and push through the 38.2% retracement. The 50% retracement and 200 hour moving average come in at 109.07-09. That would be the next key target area on further upside momentum.
Should there be more corrective move to the downside, watch the 108.72 area for support. Hold, and the bulls could rush higher once again. Move below and traders will be scratching their heads and wondering.
