61.8% retracement at 106.275 is providing some upside resistance
The USDJPY has pushed higher in trading today. In the process the pair moved above its 200 hour moving average (currently at 105.987) and the 50% retracement of the move down from the August 28 high. That level comes in at 106.069.
The run higher continued until reaching the 61.8% Fibonacci retracement at 106.275 (the high price reached 106.28). Sellers leaned against that level even before the weaker than expected ADP report helped to push the pair lower.
The decline after the ADP report did stay above the 50% retracement level at 106.069. It would take a move below that level to start to dig into the other support levels including:
- The rising trend line at 106.03
- The 200 hour moving average at 105.987
- The 100 hour moving average at 105.943
Failure to dig into those levels would have the buyers targeting the 61.8% retracement at 106.275. Break above that level and it opens up the door toward the swing highs from August 25 and August 26 near the 106.55 area.
