USDJPY stalls at 200 hour MA
The USDJPY has seen the price action move lower and now back higher. The movement has now completed a “lap”. That is the run lower was fully retraced (and then some). The early Asian session high reached 104.62. The low fell to 104.12. The new high for the day extended to 104.694.
The USDJPY’s squeeze higher took the price of the pair up to its 200 hour moving average at 104.706. Sellers leaned against the level on the 1st test. The pair currently trades at 104.64 between the 100 hour moving average below at 104.499, and the aforementioned 200 hour moving average (at 104.706).
Traders will are those moving averages for bias clues going forward. Break above the 200 hour moving average and the 50% retracement at 104.88 becomes the next key target. Move back below the 100 hour moving average and selling should re-intensify.
PS there is a disconnect with the JPY pairs today. Typically, as stocks tumble, the JPY benefits (and JPY pairs move lower). The USDJPY is now higher (+3 pips) and so are the EURJPY (+12 pips), the GBPJPY (+19 pips), the AUDJPY (+15 pips), the NZDJPY (+7 pips) and the CADJPY +2 pips). It may be month end but may be another story line being developed that is changing. Him