Price action above and below 100 hour MA in London session

The USDJPY spiked higher on the Xi headlines at the start of the Asian session.

Just prior to the run higher, traders were buying against the 200 hour MA (green line). Those dip buyers were lucky (they did not know the comments were coming), but when risk is defined and limited against a level, you can get those breaks.

The price since peaking, has corrected back to the 38.2% at 106.785 (which was swing lows from April 6 and 9th). The price has moved above and below the 100 hour MA (blue line) near 107.00.

We currently trade above the 100 hour MA (and the 107.00 level) as the market awaits the US stock market opening (gains are being maintained in pre-market trading). The market price action can swing either way with the flows - we are trading in a familiar area at least over the last 4 trading days. The 107.00 level seems to be a swing bias line - stay above more bullish, move below losing that bullish feeling.

On the downside (below 107.00) look for support at the 106.785. On the topside, get above the 107.19 trend line, the 107.285 (high going back to March 13 (not shown) and then 107.493 high for April.

Looking at the daily chart below, trader are trying to push this pair higher. The price closed above a topside trend line over the last 4 trading days. The line cuts across at 106.68 today. We have traded below the line yesterday and today, but no closes below that level...yet at least. That gives the buyers a little edge. There is room to roam to the upside if the buyers can push the pair above the levels outlined on the hourly chart.