NY session spent reversing the gains made in the Asia-Pacific/London morning session
The traders spent most of the NY session taking apart the gains made in the USDJPY in the Asian Pacific in London morning sessions. Over the last 2 hours, however,the price has rebounded modestly (and I mean modestly) back higher, and looks to move back above the 100 hour moving average at the 123.94 level (see blue line in the chart below).
The low today extended below the 50% retracement of the move up from Friday's low to today's high at 123.887 (the low extended to 123.848), but was able to remain above the 200 hour moving average (the green line in the chart below currently at 123.828). So there is a mixed picture from a technical perspective there.
On Friday, the price rallied above both the 100 and 200 hour moving averages and remained above those levels.
If the price can remain above the 200 hour moving average, we can expect higher levels in the pair into the new trading day.
Looking at the 5 minute chart, the price still remains below the 100 and 200 bar moving averages. Those levels come in at the 124.026 and 124.049 levels, respectively. Both moving averages are moving lower. If the price is going to rebound from here (with help from buyers against the 200 hour MA), look for a break of those two moving averages to confirm the upside in the new trading day (see chart below).
Once again, all bullish bets are off on a move below the 200 hour MA (currently at 123.828).
