A move above 121.00 eyed
The US GDP came in a touch weaker than the average estimate at 1.5% vs est 1.6%. The USDJPY dipped (may have been spreads widening too) to support against the 100 bar MA On the 5-minute chart at 120.79. The 100 hour MA at 120.767 also held as did the 38.2% of the bullish move higher yesterday at 120.767 as well. The buyers held support.
The move higher has been muted with the price high moving to 120.947.
If the buyers are to restart what they started yesterday after the FOMC statement, the 121.00 level must be breached. This is the 200 day MA. The price of the USDJPY closed above the 200 day MA for the first time going back to the August 31 last Thursday. That momentum did not last. Yesterday, the price did close once again above the key MA but now below. If the price can get back above, from a technical perspective (and stay above), it would give traders more support for a move higher. Failure and traders will become discouraged with regard to the upside potential. We could see a rotation back toward the support area with a break souring the mood of the buyers even more.
121.00 is the key level to get above....
