Swing area at 106.408 to 106.465 broken but not by much
The USDJPY ran higher in trading today.
In the process the price moved above its 200 hour moving average at 106.055. Recall from last Thursday the price stalled right before that moving average and moved to the downside. Not far from the 200 hour moving average was the 50% retracement at 106.07. On Friday, the price rally stalled right at that level.
Today as a result of the 200 hour moving average moving lower, BOTH of those technical levels were broken within 1.5 pips of each other at 106.055 to 106.07. That give the buyers control and they pushed the price higher.
The subsequent move to the upside tested the next key target at the swing area between 106.408 and 106.465 (see red numbered circles - topside yellow area). The price actually moved above that area to 106.492 but could not sustain momentum. The price has since rotated back down to a corrective low of 106.277.
More importantly,the failure to extend above the 106.465 swing high level with any momentum reestablishes that area as resistance. There is now battle between support and resistance levels
Where is support?
The 50% and 200 hour moving average of course.
Buyers have control today but has run into resistance. That balances the market against the support and resistance levels defined by the technicals. Traders will be eyeing the next shove through one of those levels to define the next move.
