Cracks above trend line 100 hour MA
The USDJPY has pushed to a new session high and in the process cracked above a few of resistance levels.
The pair moved above and based against the 112.57-657 area. That area is home to a number of swing levels.
A topside trend line not far from that level was also broken, followed by the 100 hour MA. On Tuesday, the price moved below the 100 hour MA (and 200 hour MA - green line), tested the 100 hour MA on Wednesday, but found sellers.
The fall last week stalled at the 100 day MA at 112.261 currently (see blue overlay line).
Today, the price stalled near that low and the 100 day MA again. The price bounced.
The two tests and double bottom, gave buyers more confidence technically. The breaking of topside targets were also a technical help.
What next?
The 38.2% at 112.916 was tested on Friday and held. It remains a target to get to and through today. Above that, and the door opens for a potential run toward the 200 hour MA (green line) at 113.135. The 50% of the move down from the November 28 high is also at that level. The combination should be a tough nut to crack on the first test.
For now, risk for longs is the 100 hour MA at 112.788. The next hurdle is the 38.2% at 112.916. Buyers in control.
