Technical Analysis

USDJPY up testing the 200 day MA/100 hour MA

USDJPY bounced off the swing floor area

In earlier post, I spoke of the test of the swing area at 111.27-304. That support level could not be broken.

The subsequent move higher is testing a key resistance area defined by the 200 day MA at 111.479 and the 100 hour MA at 111.504. That area (between 111.479 and 111.504) was broken as London traders covered into the close with a high at 111.521. However, the break failed, and the price is back below that key MA area.

We are currently trying once again to get above the resistance. The question for traders now is “Can the sellers come in against the levels and keep a lid on the price action?”  

isRisk is defined and limited, so I would expect sellers to lean against the area. However on a 2nd break, I would expect more shorts covering and the price to move higher (shorts throwing in the towel).

ForexLive

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