More work to do for the buyers however.
The USDJPY broke above a swing area yesterday between 109.35 and 109.39 and stayed above that level. Where the rally had difficulty was in getting above its 100 day MA at 109.649. The price stalled right near that level and wondered back to the downside into the early Asian trading today (the low reached 109.473).
From that low, the USDJPY price made another run toward the 100 day moving average – breaking briefly above it on the next look – but retraced again.
Finally in the London morning session, the 100 day MA (at 109.649) was broken and the price not only moved above it, but also the falling 100 hour MA at 109.714. Since then, the buyers have taken more control and pushed to an intraday high of 109.84. Stay above the 100 hour moving average and 100 day moving average keeps the buyers – looking for more dollar buying – happy.
Having said that, there is still work to do if the buyers are to make further inroads into the upside bullish technical bias. Specifically,
- The 50% of the move down from the August 11 high comes in at 109.95. That is the next target to get to and through.
- Above the 50% level, is the 200 hour moving average at 110.035
Get above both would be needed to open the door for further upside momentum in the pair and with it, further increase the bullish bias.
Conversely, sellers may look to lean against the levels on a tests (profit taking from the buyers or new sales) as risk can be defined and limited against the levels/area, with stops on a break above.