The USDJPY has seen a run back to the upside today which comes a day after racing to the downside (on Friday).
The move higher today reached 115.467. That was short of the high from Friday at 115.55, but was able to take the price back above the 100/200 hour MAs at 115.23 (for the 200 hour MA) and 115.273 (for the 100 hour MA). The early NY session low reached 115.21 just below the 200 hour MA at the time, but momentum lower could not be sustained.
The most recent correction off the day high (over the last few hours of trading) did move down to 115.287., but remained above the higher 100 hour MA. The current price is at 115.39.
The holding above the MA, keeps the buyers more in control.
Having said that, the ups and downs have confined the pair. So the bias can swing.
The last 16 days has seen a low at 114.405 and a high at 115.867 (146 pips in over 3 weeks of trading). In between those extremes sits the MAs which are helping to define bullish and bearish around those MAs near the middle of the extremes. Although there will be a break outside the wider extremes, the pair is still stuck in the “Red Box”.
Nevertheless, today’s move above the MAs are giving the buyers more of the short term control and they will keep it until the MAs are rebroken to the downside.
