Lower low rejected. Huge tail. Hammer candle stick. Higher close.
The USDJPY is looking more and more bullish as the price action is leaving a big tail on a probe to a new swing low. The price has rallied above the close from yesterday at 109.24, and is now trading above the high from yesterday at 109.408.
The market rejected the new low and is showing buyers taking firm control on the daily chart.
You can see the relentless buying on the hourly chart.
- The price started to take back the broken lows
- The price move above trend lines.
- The 100 and 200 hour MAs stalled the pair for a moment but we are now running away from those MAs
- The 38.2% of the move down from the August 16 high a 109.278
Risk for longs is now at the 100 and 200 hour MAs.
The 50% of the move down from the August 16th high is the next target at 109.596. Above that the 100 bar MA on the 4-hour chart comes in at 109.64. Remember that MA stalled the move higher on Friday before Yellen's speech. A move above is more bullish.
So technically, things are looking more and move bullish. With the quick rejection of the lows and the move higher on the day and above the high from yesterday, has the bulls excited. I cannot blame them.
