Pair runs away from 100 hour MA
The USDJPY stayed in a downward channel trendline yesterday and continued that moved to the downside today (see the hourly chart below).
The low for the day - reached in the early European session - stalled against the lower channel trendline AND the rising trend line on the hourly chart. The intersection of the trend lines gave traders a low risk trading opportunity. The sellers turned buyers. The price started to move back up to the upside. Key support held,and the price move higher
The breaking of the topside channel trend line and the 100 hour moving average (blue line in the chart above) has helped to push the price even further.
Looking at the chart above, the pair is now looking toward a test of the 50% retracement at 106.07. The high price just reached 106.054. Sellers have leaned against the midpoint level on the 1st test.
A move above the 50% retracement will have traders looking toward the 200 hour moving average (green line in the chart above). That 200 hour moving average, comes at 106.195. The high price yesterday stalled just ahead of that level. That old increases the levels of importance going forward. Getting above would be needed to continue the upside momentum in the pair.
On the downside now, watch the 105.924 as close support (see green numbered circles in the chart above). That level corresponds to a swing low from August 11 and August 17/18. Holding support against that level now would keep the buyers firmly in control.
