USDJPY consolidation continues, but holds nearly all the gains

The USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term moved nearly 300 pips today with most of that move being to the upside.

Looking at the five minute chart, the pair closed at 128.42. The low price was just nine pips lower than that at 128.33. At the lows in the Asian session, the pair stalled near the rising 100 bar moving average. That ultimately led to a sharp move higher which kick started the near 300 pip Pip In forex markets, a pip is a percentage in point or price interest point (pip), reflecting a unit of change in an exchange rate. Major currency pairs are traditionally priced to four decimal places – a pip is one unit of the fourth decimal point, or 1/100 of a cent. The exception in this case is the Japanese yen, in which a pip is one unit of the second decimal point. Pips adhere to a rate of change that may be related to a value change in a position of specific currency rates. Forex is traded In forex markets, a pip is a percentage in point or price interest point (pip), reflecting a unit of change in an exchange rate. Major currency pairs are traditionally priced to four decimal places – a pip is one unit of the fourth decimal point, or 1/100 of a cent. The exception in this case is the Japanese yen, in which a pip is one unit of the second decimal point. Pips adhere to a rate of change that may be related to a value change in a position of specific currency rates. Forex is traded Read this Term move.

Since peaking at 131.246 around five or so hours ago, the price has consolidated with the low at 130.707. The current price is trading at 130.922. The consolidation has allowed for the 100 bar moving average to catch up to the price. The last hour or so has seen the price trade above and below that 100 bar moving average, but momentum to the downside has been limited to a low of 1.3080. The sellers aren't exactly showing much strength.

Technically in the short term, it would not only take a move with momentum below the 100 bar MA, but also a a move below the 200 bar MA. The price of the USDJPY has not traded below the 200 bar MA since early yesterday. Getting below it would be a short term victory for those trading the pair, but the price would have to stay below the MA and start to take out lower levels like the 38.2% of the day's trading range at 130.137 (near lows intraday as well).

See earlier post for a broader view of the price action.