New lows for the week could not keep momentum going. 50% retracement holds support.
The USDJPY as the tilted more to the upside after breaking above its 200 hour moving average (green line) and also the 100 hour MA (blue line). Those moving averages come in at 110.575 and 110.667 respectively. Risk for longs looking for more upside momentum would not want to see the price move back below the 200 hour moving average (it is also the 38.2% retracement).
The USDJPY has actually seen the price dipped below lows over the last couple days. Yesterday, the low from last Friday was taken out, and then the first low was also taken out. However, each successive low could not find additional momentum, and the price move back higher.
Today, the lows from yesterday were also taken out, but the lower trendline connecting the recent lows held support, as did the 50% retracement of the move up from the June 22 low at 110.410.the last 4-5 hours have seen the buyers take more control, highlighted by the breaks of the moving averages.
The swing high from yesterday comes in at 110.753. That will be the next upside target. The swing high going back to June 17 is above that at 110.823. A downward sloping trendline cuts across at 110.863. All those levels are the next upside targets today.
