USDJPY reverses back above its 200/100 hour MAs. Can the price stay above those levels?

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 has moved higher on the back of the dollar buying after the CPI data showed higher than expected inflation last month.

Technically, the price moved back above its 200 hour moving average at 130.17. The price also extended back above its 100 hour moving average at 130.421. That 100 hour moving average is being breached to the downside as I type. Technically, that neutralizes the bias as the price now trades below the 100 but above the 200 hour moving average.

The high price today extended to 130.806 which was a swing high going back to last Friday's trade. That was also the high for the trading week. Sellers leaned against that level on the 1st test. It would take a move above that level to increase the bullish bias going forward.

What next?

For the buyers to remain content, staying above the 200 hour moving average is key. A break below the 130.171 level would likely lead to buyers turning to sellers on the disappointment.

Absent that, traders looking for more upside will be eyeing a move back above the 100 hour moving average (sooner rather than later) followed by the swing highs from yesterday near 130.553 (see red numbered circles).

Break above that level would have traders looking back toward the high from last week, and the high from today at 130.801.

Move above 130.80, and the high from April 28 at 131.242 along with the high from yesterday's trade at 131.342 would be back in the traders sites. Those levels were 20 year highs.