USDJPY trades to new lows for the day and bounces
The USDJPY fell to a news session low for day, reached the 100 hour MA at 108.31 and bounced. We currently trade at 108.416.
The pair gapped higher and moved even higher in the Asian session. The rise saw the price extend above the 200 hour MA. However, that break stall against the underside of an old broken trend line AND against a topide trend line (see green numbered circles). The combination helped to start to move lower. An erosion of the gains in the stock market may have also contribute to some of the weakness.
Despite, the decline, the price still remains higher on the day.
WIth the bounce off the 100 hour MA (and some resistance near the area on Friday), that MA will be eyed for buyers to lean (with stops below). On the topside the 200 hour MA and the trend lines are targets.
Last week, the pair bottomed on 4 days in the 107.808 to 107.879 area. Each day found buyers. If those lows found the bottom in the pair, holding the 100 hour MA makes sense.
