Dipping a little on a little weaker stocks
The US stocks opened a little weaker and yields are also a little lower. That has the USDJPY dipping a little.
Looking at the hourly chart, the pair sits in the middle of the 100 hour MA above at 111.602 and the 200 hour MA at 111.31. Ahead of those levels are swing level at 111.54-58 above and 111.36-40 below (see yellow areas). The USDJPY is currently trading at 111.43.
The price is higher on the day - closing on Friday at 111.222. Earlier, the price tried to stay below the 50% midpoint of the recent move up from the July 26th low at 111.364. When the price moved above today, sellers turned to buyers.
Overall, the pair a little more bullish being back above the
- close from Friday,
- the midpoint of the recent range,
- the 200 hour MA (green line)
However, it is not racing as the price action remains somewhat contained. Longs are ok. Shorts are kinda trading against the flow, but unless the 100 bar MA is broken, they are holding and hoping for a retest of those lower levels.
