The USDJPY continued it’s move higher today after reaching a low of 132.419 yesterday. That move took the price below a swing area between 132.24 and 132.479. However, when the price move back above the swing area during the US session yesterday, sellers turned buyers and that momentum has continued into today. In the morning video, I spoke to the test of the 100 and 200 hour moving averages near 133.83. Also near that level is the 38.2% retracement of the move down from the July 14 high.
The inability to move above that area, has increased the levels of importance going forward and into the new trading week. If the buyers are to take more control, they would need to get above the 3 technical levels and stay above. The next target area would be between 134.31 and 134.567 followed by the 50% midpoint of the move down from July 14 high at 134.882.
On the downside, the aforementioned swing area (see red numbered circles and yellow area) will be eyed once again as support. Fall below its and the 100 day moving average at 131.345 (and rising) would be targeted.
