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Bounce off the 100 hour MA spoiled the sellers party
The USDJPY is trading to new session highs. The range is still narrow at 35 pips (the 22 day average is 54), but when the price fall stalled at the 100 hour MA below (blue line), the party was over for the sellers. The buyers took the price back higher.
The move back higher has also moved back above a broken trend line on the hourly chart above. That line is back to being a support level to define the bias. Stay above is more bullish.
The high from Friday at 112.868 is a target now. On more momentum, the topside channel trend line at 113.03 will be eyed (and moving higher).
In other JPY pairs:
The GBPJPY is trying to follow but is it still below its 100 hour MA at 147.996 (call it 148.00. The 200 day MA is at 148.235.
The EURJPY moved up test the high from Friday at 133.12 (the high today reached 133.06). That would be a topside target but like the GBPJPY, the pair is not rising like the USDJPY.
On the downside, a lower trend line comes in at 132.13. More important support comes in at a lower trend line and 100 hour MA (both rising) at 131.848. The price has not been below the 100 hour MA since September 11.
This article was originally published by Forexlive.com. Read the original article here.