The USDJPY remains between its 100 and 200 hour moving averages (blue and green lines in chart above) with the buyers looking to make a play as it moves toward the high for the day and key topside resistance target.
Looking at the hourly chart, the correction low from Friday's trade reached 134.616. The low prices from yesterday's trade reached 134.63 and 134.65 respectively. Today's lows reached 134.71 and 134.75. There is a swing area between 134.616 and 134.724. The 100 hour moving average (blue line) is also now near that area at 134.715.
Support is holding with the 100 hour moving average and the swing area (see red numbered circles) giving buyers an area to lean against (with limited risk).
Having said that, on the topside, resistance against the 200 hour moving average is also doing a good job of holding (green line in the chart above). Admittedly there was a break above the 200 hour moving average in early Asian session yesterday, but that break failed fairly quickly, and resistance was reestablished against the moving average line in the early New York session yesterday, and once again in the early Asian session today. It would take a move above the 200 hour moving average now to increase the bullish bias.
Taking a broader look at the 4 hour chart below, recall from yesterday's video, the 135.13 to 135.36 area is a key swing area (see red numbered circles on the chart below). Looking at the chart below, that area represented a
- Swing high in February,
- A swing low in early March and a
- Swing high again in late March.
In April the area was revisited and found willing sellers before being broken toward the end of the month. Last week, the price fell back below the swing area but has returned to retest it this week. Get above 135.36 is more bullish.
Of note is the 100 bar moving average on the 4 hour chart is also holding support (bullish)
So buyers are trying to make a play, but they still have work to do. There is also room to roam as the low to high range this week is only about 70 pips. The average trading range for a single day over the last month has been 127 pips.
US stocks are getting ready to open lower. Yields meanwhile are near unchanged.
