Pare strong gains
The USDJPY ran out of steam.
The pair was up a healthy amount as NA traders entered. Retail sales sent the pair even higher and in the process above its 100 bar MA on the 4-hour chart. The high extended to 110.84. The 38.2% of the move down from the July high was ahead at 110.922. It could not reach the target and when other markets started to slow (stocks/bonds), the correction was on.
What next?
The price has come off to 110.54. The aforementioned 100 bar MA on the 4-hour chart is at 110.497. That and the rising 100 bar MA on the 5-minute chart (see chart below) is at 110.465 (the London morning high was also at that level). That MA stalled the fall before the sprint higher on the retail sales. If buyers are to keep the fire burning, that will be the support area now to stay above.
