What could have been, stalled
The USDJPY got a boost early on, helped by rising stocks and just a calmer environment.
However, stock rallies stalled, the gains eroded and indices have moved back toward unchanged levels.
The same thing happened in the USDJPY (it moved higher and has come back down).
Technically, earlier in the day, the 200 hour MA was tested and stalled the rally. After a modest correction, the price based (at 109.62) based, and shot above the 200 hour with the rise in US equities.
The pair did stall near the next key target at the 50% retracement of the move down from the May 21 high at 109.906 (and below the naturaly 110.00 level too). The high reached 109.92.
The subsequent fall back below the 200 hour MA turned the buyers to sellers. The bullish party was over.
What now?
Well, the price is back toward the earlier session low at 109.62.That was also a high from Tuesday. Dip buyers are looking for a hold here.
However, if that level can be broken, we should see a move back toward the 100 hour MA at 109.47 as traders battle between the two moving averages.
Buyers had their shot. That shot stalled and reversed. Now the battle is back on.
