Inches higher and higher
Gold is lower. Stocks are higher and steady. Interest rates are higher. All are helping to keep the USDJPY supported and it inches higher in trading today.
However, we are also approaching a topside trend line, 38.2% and a swing area from last weeks trading at the 112.65 area. Just above that is the 100 hour MA at 112.726. Last Thursday, the price stalled at the MA level and fell lower.
I would expect some stall at the 112.65-72 area as buyers from below take some profit, and new shorts lean against the area. However, if there is a break, look for stops to be triggered.
Drilling down to the 5-minute chart (see earlier chart), I spoke to the lower trend line, and the 100 bar MA (blue line). Those levels held support and the upward sloping trend line has been broken in the last hour.
So buyers are accelerating the momentum a bit above the topside trend line. However, we still need to contend with the swing highs from Friday AND the 100 hour MA just ahead....(See chart below).
