Run above swing area (and the 100 day MA) FAILED
The USDJPY has raced higher and then raced lower in trading today.
The initial run to the upside took the price through a key swing area between 107.394 and 107.440. That area has been home to a number of swing areas going back to July 3 (at least - see green numbered circles and yellow area). The price also briefly broke above its 100 day moving average at 107.504. All that good/bullish developments FAILED. The buyers turned to sellersa nd the price has marched lower.
That move to the downside, has moved toward the 50% midpoint of the move up from last week's low to the highs seen today. That level comes in at 107.094. The low for the day reached 107.058.
The price over the last 4 so hours has traded above and below the 100 and 200 hour moving averages which are near converged at 107.13. That is about where we trade currently.
Traders awaiting for the next push. The run to the upside and failed breaks are not all encouraging for the buyers. Pushing back below the 50% retracement and getting below the 107.00 level (that would break the trendline on the hourly chart as well at 107.01), would open the door for further downside potential.
What we know is the buyers had a shot. That shot failed.
