The USDJPY has extended up to the target 61.8% retracement at 105.466 (see earlier post and chart outlining the target for the pair). The pair based near its 200 hour moving average currently at 105.089 (green line) earlier in the NY session. Although the price did try to dip below the MA line (the low reached 105.085 when the MA was at 105.11), the dip was short-lived and the price has spent most of the NY session ticking higher. There has only been one hourly down bar.
There has been some profit taking near the retracement level. The pair has a 66 pips trading range for the day. The 22 day average is 64 pips. So the pair has reached the average for the day. Add reaching the target at the retracement level and there is a few reasons to take some profits.
Nevertheless, the buyers have stepped higher this week with the pair moving above the 100 hour MA (blue line break yesterday with momentum) and the 200 hour and 50% retracement today. The 50% corresponds roughly with Asian session highs and near swing highs from September 17. If the price can stay above that area (call it 105.167 to 105.186)on a correction going forward, the buyers remain in control.
On the topside getting above the 105.537 to 105.600 area, and the topside opens up with 105.782 as the next target.
PS the high price from last week reached 106.16 (at the 100 and 200 hour MAs). The price trended down for 5 consecutive days and moved to the low on Monday at 103.99. That move to the low was about 216 pips. The move to the upside has now moved up 149 pips. Are we on our way to a full lap of the trend move lower? The technicals will help tell the story.