Tests old trend line
The USDJPY has moved to a new 2018 high price. IN fact the high at 114.129 today, is the highest level since November 7th, 2018.
On the hourly chart, the price has tested the old trend line that did a good job of stalling rallies up until Monday. On Monday, the pair broke above the trend line, failed and tested the 100 hour MA (blue line) earlier today. Holding that trend line was bullish. The buyers took back control.
Now, the trend line represents a hurdle for the bulls. On the first look, there is some selling. A move back below the 1114.055 high from Monday will be eyed by the sellers now. Get below and they picked the high. If the price cracks above the trend line, you have respect that price action. I would expect the sellers, to turn to buyers again.
Looking at the daily chart below, the 114.36-49 area is home to swing highs going back to May 2017 (see red circles in the chart below). That area would be targets on a break above the trend line on the hourly. Above that is the November 2017 high (that move higher failed) that reached to 114.728. I would not be surprised to see those levels tested, IF the trend line on the hourly can be broken.
Right now, sellers are leaning and hoping for a move back below the 114.055 (and 114.00) to give some breathing room (for those sellers).
