USDJPY bounces near 200 hour MA again

The 200 hour MA has been a magnet for the USDJPY over the last 6 trading days, but once reached, the price has seen a push away. That MA (green line in the chart above), was tested last Friday and bounced. It was tested on Wednesday this week and bounced. Today the price got within 5 or so pips of the MA, and once again bounced.

That is 3 tests in 6 days and 3 bounces.

If you go back to February 10, after a failed break below the 200 hour MA, that same MA based the pair before moving higher.

The point is... the 200 hour MA has been a bullish barometer for the USDJPY. It also has been a level that traders have been leaning against on the dips EVEN THOUGH it is at progressively at higher levels.

That is the bullish.

The not so bullish you is the price action this week has run into some formidable resistance above that has been able to put a lid on the rallies too. More specifically, the 100 day MA currently at 136.79 and the 200 day MA currently at 137.28 are key resistance targets.

During trading yesterday, the price did move above the 100 day MA, on two separate occasions only to find willing sellers. The 200 day MA was not threatened.

With the price currently trading at 136.277, the pair sits between the 100 day MA above at 136.79 and the 200 hour MA below at 135.746. In between THOSE level sits the 100 hour MA at 136.328. That 100 hour MA will be an interim barometer.

So... the battle goes on. Traders will be looking for the next shove.

On the top side it would be to get above the 100 day moving average and then the 200 day moving average (see blue and green lines on the chart below).

USDJPY on the daily chart

ON the downside, the importance of holding the 200 hour moving average is important. Will blow it and stay below would open the door for more downside corrective probing in the pair.

PS the low to high trading range for the USDJPY this week is only 184 pips. That is the lowest trading range since 171 pips back in September, and the fourth lowest trading range over the last year. The market is non-trending, helped by the the technical levels in play. The narrow trading range supports the view that the market is building up for a break and a run.