Floor held yesterday and today, giving buyers the green light to climb higher
The USDJPY continues its ups and downs.
Aside from a failed upside breakout on Monday (which ended up stalling near the key 100-day MA at 107.497), price traded high at 107.44 at 106.629. Yesterday – and today – the pair tested the extreme low, stalling just before the extreme zone at 106.66 (see lower yellow zone and numbered green circles). Yesterday’s low hit 106.672. The Asian session low today stopped at 106.705 before sellers turned to buyers and started to move higher.
Currently the price is trading at 107.04 and is approaching the bullish resistance defined by the
- 200-hour moving average at 107.09,
- the 50% retracement of the range since July 15 at 107.094 and
- the 100-hour moving average at 107,116.
This resistance group should give traders a reason to pause with stops on a breakout above.
Remember yesterday in the Asian session there was a low of one that bounced off the 2 moving average levels (see chart). Later in the New York session, the breakout below the moving averages (and an uptrend line) opened the door to the downside. The sellers jumped on the break and pushed the price down (over the next 5 hours).