The USDJPY is recovering the declines from Friday's trade. The price on Friday traded and closed lower on the day. However, in trading today, the price based near support at the 112.954 to 113.049 area (see red numbered circles), and ultimately extended above its 100 hour moving average in the European morning session.
Most of the price action in the European/US session has been above the 100 hour MA (blue line at 113.112). There were two modest moves below the MA level, but each were rejected. The buyers are making a play. They are trying to keep short-term control.
If the buyers can now keep the price above the 100 hour moving average level (risk for intraday longs), they can start to work on upside targets including
- 113.33 (swing high from Thursday's trade) and then a
- Swing area between 113.578 to 113.706.
Near that area is the 38.2% retracement of the move down from the November 24 high (at 113.666), and the falling 200 hour moving average at 113.720. Ultimately, if the buyers are to take more control, getting above the 38.2% retracement, and the 200 hour moving average is required.
Summary: Buyers are trying to take control and keep control. As long as the 100 hour moving average can hold, the tilt is in the direction of more corrective upside probing in the short term at least.