USDJPY remains above rising 100 hour MA and key swing area
If the USDJPY can remain above technical support levels, the buyers are in control
The USDJPY is trading near the session highs as the pair rebounds after the better US data.
Having said that, the range for the day is only 22 pips. So the pair is certainly not on fire, but if there is a bias, it remains to the upside.
Technically, the pair yesterday dipped toward the rising 100 hour MA and found buyers a few pips above that technical support target (see the blue line in the hourly chart above). Today, the pair remained comfortably above that MA line. The 100 hour moving average is currently at 109.866 (and moving higher). As long as the price can stay above, the buyers are in firm control.
Should that MA be broken, there is another support area that is key for the bias going forward. The 109.675 to 109.723 is home to swing highs going back to December 2 (the early swing highs are not shown). On Monday, the price swung above that yellow area and stayed above. Bullish.
It will take a move below the 100 hour MA and then the old swing high area at 109.675 to 109.723 to turn the bias more to the downside now.
On the topside, the high from yesterday reached 110.204. A move above that level will look toward the 61.8% retracement of the daily chart at 110.472 as the next key target. Above that his a topside trend line currently coming in at 110.77.