Watch the 110.263 level for intraday resistance IF the sellers are to take more control
The USDJPY continued its run higher in the Asian/early European session and in the process extended above the swing area between 110.222 and 110.263. The next key target was the swing high from September 1 at 110.413. That level was also broken with the price reaching the highest level since August 12 at 110.442.
The price moved lower and fell back below the aforementioned swing area. The last two hours has seen the price trade above and below the swing area as traders decide “higher or lower?”.
Watch the 110.263 area for intraday bias clues.
If the price can stay below, that would be the best case scenario for a more bearish move down that could see the price return to the converged 100 and 200 hour moving averages near 109.961 (the broken trendline is also near that level).
Conversely if the price moves above the 110.263 level, that could be enough to tilt the intraday bias back to the upside.