Traders leaned against trend line and 100 hour MA.
The USDJPY opened weak at the opening - falling below a trend line connecting lows on the hourly chart (see red shaded area). However, once the price moved above the line, traders started to lean against that line. Then there was a break above the 100 hour MA (blue line in the chart below) and traders started to lean against it.
With support holding and anxiety about the Clinton emails dying down, the pair has continued to rachet higher.
Looking at the 5 minute chart, the price has moved above the 50% of the move down from Friday at the 104.948. That level was tested on the weaker Chicago PMI but quickly bounced (the low reached 104.918). The quick bounce keeps the buyers more in control. However with the last test, traders who are long will likely use the level as a risk defining level for the day. Stay above bulls remain in control. Move below and the waters turn more muddy/bearish intraday (move below 104.92).
On the topside, the high for the day has held below the 61.8% of the move down so far (see 5 minute). That level comes in at 105.084 him. Getting above that level (and staying above) will give the buyers another reason to be happy about the bullish progression today.
With the resistance levels like the trend line, 100 hour MA and 50% being broken AND then holding, the buyers area showing they remain in control. It is about maintaining that control by holding support now AND getting above the next target (at 105.084) .
A move to new highs will next target 105.23 (50% of the move down from the May high) and then the high from Friday at 105.525. Also above is some trend lines that cut across at 105.62-75. If the buying continues (today or going forward), I would expect this to be a tough level to get above on the 1st look. There should be some profit taking with stops above.
