The USDJPY fell on the worse than expected Philly Fed Index, but held the 38.2% of the move up from yesterday’s low. Holding the level, has given the pair a boost and the price is back above the 200 day MA at the 79.18 level. This is a good sign for the pair.
The move today has taken the price into a new region above 79.00. The move down from the high in 2012 at 84.17 took the pair to a low of 77.65. This was above the 2012 low of 76.01 reached at the end of January. The most recent low this month was above the low from June. So there is a pattern of higher highs.
With the price now back above the 200 day MA the bulls/buyers are taking back some control. If the momentum can continue there certainly is room to roam for the correction. The 100 day MA at 79.68 today and the 38.2% of the move down from the 2012 high at 80.14 are the next targets. The market now needs to believe in the move. This is a start though.
