Early fall below 100 and 200 day MA fails. Stocks help tone of the pair
The USDJPY in the Asian session did fall below the 100 and 200 day MA (using end of day at 5 pm and no Sunday trading). Those MAs come in at 109.978 for the 100 day MA and the 200 day MA at 109.838. The low for the day reached 109.767. It was the first move below the 200 day MA level since June 18th. The last time the price fell below the 100 day MA, was back on May 29th briefly. The last close below was back on April 24th.
That move below failed, however, and the rebound began.
Looking at the hourly chart below, the price has rebounded toward the 38.2% of the move down from the August 15 high at 110.40 and the broken trend line at the same level. The high reached 110.437 before backing off. We currently trade at 110.35. The low last week reached 110.318. Watch that level on this dip. Does it hold?
On a break of the 110.40 level (and the swing area at 110.42-45 - see green circles), the 100 hour MA and the downward trend line comes in at 110.57. The 50% is a bit higher at 110.596. That area should be a tough nut to crack on a test.
SUMMARY: Buyers are more in control on the move higher today. The pair reached a target area. The battle is on with eyes on last week's lows for intraday bias clues. On more upside, the 110.568-59 is tough resistance.
