Slow correcton lower continues
- It is Friday.
- It is after a mixed employment report with good and bad (more good I see, but...)
- The USDJPY has moved from 101.17 to 114.82 since election day. That is lot of pips in a short period of time.
- The high this week stalled at the 114.82, just short of the 114.86 swing high from mid-February.
The high today went and tested the high in the Asia-Pacific session and held at the 114.18 level. Since then, the price has wandered lower and just sstalled at the 100 hour moving average at 113.31. The level also corresponds roughly with the swing high from November 25 in the swing high from November 29th. That is a support line. Sellers against the highs just bought the support at the 100 hour MA and old swing levels. Does that make sense? Yes.
Now what?
Drilling down to the 5 minute chart the 113.54-60 area has 3 separate swing lows. The spike move lower on the number will be ignored. If the sellers from above still like the short side, that is close resistance now. Of course we need a break (and stay below) the 100 hour MA. If we move above the 113.60 level, the sellers get more nervous. The water gets more muddy technically.
We are testing that level right now. Will it hold and have another test below OR will the waters get muddy.
We are testing that level right now. Will it hold and have another test below OR will the waters get muddy. Remember point number 1 above - it is Friday so that means flows will dominate. So be cautious. Trades are trading but week end flow matter too.
