The 100 and 200 hour MAs are providing the support and resistance for the USDJPY pair today.
Yesterday (see chart above), the price tried to break below the 200 hour MA (green line) but failed. From that point a wander back higher was started (see post from yesterday – CLICK HERE). The move higher overnight, extended to the 100 hour MA (blue line) at the 78.434 level (high reached 78.42). Sellers emerged against this level and the rotation back lower ensued (stopping near the 200 hour MA – green line). Back and forth between what I call the Goal Posts. When this happens, the market is probing for a break either higher or lower.
WIth the price off the low, a move above the 78.29 level is the next target above, then the 78.371 (38.2% of the move down from Friday’s high). A move above the 100 hour MA at 78.44 opens the door for further upside momentum.
If this rebound off the low stalls, look for the break of the 200 hour MA to target the low from yesterday at 78.069. The 77.94 and 77.658 will be next key targets on the break. These levels correspond with low off the daily chart (see chart below).
