Back up after testing broken trend line...
The USDJPY is back up testing its 100 hour MA at 109.347. The price just printed a new European high of 109.36 and has backed off a bit on the test. The Asian session high reached 109.397 but it too failed on the breach of the 100 hour MA.
On the downside, the pair tested the underside of a broken trend line at the lows and bounced.
So with support holding and resistance being tested and holding, traders are trading and looking for a break.
On a break higher, the pair will have to contend with the 200 hour MA at 109.451. The 38.2% of the move down from the August 16 high comes in at 109.49. The high from Friday (right before Yellen) was testing the 100 bar MA on the 4-hour chart.
If the price reverses back lower from here, the lows from last week (and that broken trendline which is moving lower) will be eyed.
Drilling to the 5 minute chart, the 100 and 200 bar MA come in at 109.18-19. That is the closest support on a rotation back lower. The price based on the last dip against the 100 bar MA (blue line) and extended to the 100 hour MA resistance.
