TECHNICAL ANALYSIS

USD / JPY nears short-term key test near 108.00


USD / JPY nears 200-hour moving average test

USD / JPY S1 20-04
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As the dollar strengthens to start the day, the USD / JPY is nearing 108.00 and is now approaching a 200-hour MA test (blue line) at 107.98.

The pair was hugging the 100 hour MA (red line) to start the day and the buyers held the level to keep the short term bias more neutral. For now, the 200-hour MA will now be a key level of focus, as a break above that will see the short-term bias becoming more bullish.

Despite the solid performance in the equity sector recently, the USD / JPY remains largely trapped between 107.00 and 108.00 because trade in dollars has been rather jerky.

As we start the new week, the risk looks lukewarm while the dollar remains slightly firmer, but we have seen this same price action struggle to gain new momentum, as evidenced by the last leg of last week.

But perhaps a potential break in the 200 hour MM will prompt buyers to extend the momentum and pursue a daily close above 108.00.

In this regard, the 200-day moving average at 108.33 will also be a key level to take into account if we see that price action is starting to hold above the level of numbers.

In any case, I would say that it is still early in the day to say what will correspond to the last surge of the dollar, but the levels of risk can be clearly defined and limited as indicated above.

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