Ups and downs continue in the USDJPY.
The USDJPY has made three new lows over the last two trading days.
Yesterday the price took out the Monday low of 107.879 but only to 107.85.
After a brief rally, a new low was made but only to 107.84.
The price rallied again, but stayed below the Monday high at 108.45.
Today, the fall after the weaker ADP took out the 107.84 low, but only to 107.808. Three new lows, but only by a few pips each time.
Buyers? I give them some respect.
Now is the pair running higher after the failed breaks? No. The biggest rebound was 50 pips. The rebound today is 38 pips so far.
What would give the buyers more confidence?
The Monday high at 108.45 is now also where the 100hour MA is found. The pair fell below the 100 hour MA on May 31 and has not been above it since that break. The up and down consolidation has let the 100 hour MA catch up to the price. The level will be an important barometer for bulls and bears.
Stay below keeps the bears in control AND traders will continue to hope for a bigger break below the lows.
Move above and the dip buyers could be joined by new buyers on the break.