USDJPY backs off from key MA
The USDJPY tried to extend below the low from yesterday in the Asian session but got nowhere. The subsequent rally gained upside momentum after breaking back above its 200 hour moving average (green line currently at 107.459), and then its 100 hour moving average (blue line currently at 107.503). Sellers turned buyers and the early European session saw the price extend higher.
That run to the upside, however, had a limit. That limit was the high from yesterday at 107.766 followed closely by the 100 day moving average at 107.74 (see blue over laid line marked D1 in the chart above).
The stall against that level has led to a rotation back lower as traders ponder the up and down action and the next move. The 100 and 200 hour MAs below (blue and green lines at 107.50 and 107.459) area now support. 100 day MA is resistance above at 107.784.
Traders are trading and being guided by the technical levels The sellers had their way yesterday. The buyers have wrestled the control back today. However, there are limits in each direction.
