Earlier test of 200 hour MA found sellers today.
The USDJPY stepped lower last week and traded low on Monday initially, before rebounding higher. The pair is working on its 3rd day to the upside (above the 104.913 closing level from yesterday).
Looking at the hourly chart above, the pair moved up to test its 50% retracement of the move down from the September 8 high and its 200 hour moving average near the 105.186 level in the Asian session, but backed off against the technical levels. The corrective move lower retested the close from yesterday and the broken 38.2% retracement near the 104.91 level. The last 4 hours have seen the price moved back higher. The pair has moved to a new session high to 105.22.
The move higher has taken the price above its falling 200 hour moving average currently at 105.114 and its 50% retracement at 105.186. Traders will now be looking for that area to hold support and push the price higher. The swing low area between 105.239 and 105.289 is the next target to get to and through. Above that the 61.8% retracement at 105.466 will be targeted.
If the price moved back below the 200 hour moving average, I would expect that the break buyers would be disappointed and we could see another rotation back down toward the 104.90 support area.
