Buyers taking control in the USDJPY
The USDJPY has extended above it's a topside trend line at 103.839 (see green numbered numbered circles), and the price has moved up to a high of 103.93. That is near swing high going back to Wednesday's trade.
Getting above that level would have the traders targeting the 104.028 to 104.089 swing area (see red numbered circles).
Until that break, the pair had been trading down and up and back down again. The initial high price in the Asian session stalled against the topside trend line (see green numbered circle 3). The subsequent fall took the price back below the 200 and 100 hour moving averages (green and blue lines) currently at 103.76 and 103.69 currently, but could not fall below swing highs from last Thursday's trade near 103.662. After another test of the trendline and the 100 hour moving average both held (on the high and low), the pair finally made a run above the aforementioned topside trend line currently at 103.839.
What now?
Stay above the broken trend line keeps the buyers in control. The work that needs to be done for the break higher buyers, is to get the price above the 103.929. The next target area comes in at 104.028 to 104.089. Get above that level opens up the door for further upside.
Move back below the broken trend line, and the "break buyers" will likely be disappointed. The pairs trading range is now only 27 pips (the 22 day averages 47 pips). So failure on the break with room to roam, would be disappointing for those looking for more upside.
