200 hour moving average stalled the rally in the Asian session
The USDJPY has done a lot of trading today above and below its 100 hour moving average. If you're looking for the moving average to provide some clues, today was not the day. However the pair has ping-pong within a downward sloping, bull flag (?) formation (keep that idea in mind). You follow what is working. The trend lines have the traders attention so far today.
In contrast to the 100 hour moving average, the 200 hour moving average did its job at the Asian session high. Sellers leaned against that moving average (green line currently at 106.227) and that turned buyers and the sellers.
What next?
Follow the trend lines. If the price can get and stay above the 106.017 level on the topside and then the 50% retracement at 106.07, traders will be looking for a rotation back to the upside and a retest of the 200 hour moving average at 106.227.
If the price cannot extend higher, watch for the rotation back to the downside and back below the 38.2% retracement at 105.841. The lower channel trendline currently comes in at 105.75 (and moving lower).
Will the hundred hour moving average matter? You always keep an eye on it for bias clues even when it chops around.
