200 and 100 hour MA contains the action in trading today so far
The USDJPY found support buyers earlier today against the:
- 200 hour moving average (green line in the chart below). Currently at 118.48.
- 61.8% retracement of the move up from the US employment day low at 118.419
- Old lows from Monday/Tuesday (down to 118.345)
The low today came in at 118.403.
The bounce has taken the price back toward the:
- 100 hour MA (blue line in the chart above), and
- the broken 38.2% of the same move down at the 119.196.
- The high from last Friday's US employment day (at 119.209)
The high has come in at the 119.186.
If the idea is buy low/sell high, the range can be defined by the 100 and 200 hour MA goalposts. In between those extremes is the 50% of the move up from last Friday's low. Keep an eye out for a breakout with momentum/failed breaks. The range for the day is relatively narrow at 79 pips.
On the daily chart, the pair remains near the middle of an up and down trading range. Are we entering a confined trading range like we experienced in the first 8 months of 2014? If so, we have a long way to go.118.85 was a high ceiling area for December.
