The USDJPY spiked higher with the USD after the better than expected jobs report. The pair moved up to a high price of 105.387, but has backed off to 115.13. The current price trades at 115.245 between those extremes.
Looking at the hourly chart, the 115.03 to 115.113 has been a swing area going back to January 9. Move back below that area, and we could see further rotation back down toward the converged 100 and 200 hour moving averages at 114.798.
Note today, that on the test of those moving averages buyers did lean prior to the jobs report. The dip buyers were rewarded with the spike higher (and took the risk too).
When the two hourly moving averages converge, it is indicative of a up and down price action market that is trying to find its way.
The 61.8% retracement of the 2022 trading range comes in at 115.245. Move above and then above the high for the day, and traders will target another swing area between 115.53 and 115.671 (see red numbered circles and yellow area). Move above that area and traders would next look to target the highs for the year up to 116.347.
