Yesterday's high becomes today's resistance

The USDJPY has traded lower and back higher in an up and down session.

Yesterday's high becomes today's resistance

Looking at the 4 hour chart, the move to the downside did break below a cluster of support defined by the 200 hour moving average at 106.60, the 61.8% retracement at 106.638 and a swing area at 106.629 to 106.705. The price low dip to 106.56. The break should of solicited more selling, but instead the buyers reentered and pushed the price back higher. Buyers still in control.

The moved to the upside stalled at 106.989. That I was just short of the 107.009 high from yesterday's trade. The price currently trades just below that area 106.94.

If the pair is to continue to move higher, getting above the 107 level would be the obvious next target. On a break, traders will next die the key 100 day moving average at 107.212. The price has not closed above that moving average since July 1. There should be sellers against the moving average on the 1st retest.

Should the 107.00 continue to be problematic, moving back below the close from yesterday at 106.88 may be enough to tilt the bias back to the downside at least intraday. Looking at the 5 minutes chart, the last dip reached 106.87. Earlier highs for the day stalled ahead of that before the pair finally broke higher. Stay above keeps the buyers more in control intraday. ON a break look for momentum to build.

USDJPY on 5 minute chart