Price extends above 200 hour MA today. Stay above is more bullish
The USDJPY is making a new high in early NY trading. The price is testing a swing low from July 13 in the process at 110.193. The 50% of the move down from the July high cuts across at 110.357. A swing area comes in between 110.389 and 110.445 (targets on more upside).
In trading yesterday, the pair tried to extend back below its 100 day MA (overlayed lower blue line in the chart above) near 109.465 but could not maintain downside momentum. Ultimately, the sellers turned to buyers, pushing the price above its 100 hour moving average (blue line currently at 109.832). That moving average acted as support on dips both late yesterday and in the early European session today. The buyers leaned against the level and pushed higher in the London session.
The run to the upside took the price above the 200 hour moving average currently at 110.03, and that MA started to act as support over the last 6 hourly bars (there was a small dip below which was quickly reversed).
Going forward, the 200 hour moving average is now close risk. Stay above and the buyers remain firmly in control.
