The USDJPY continued what it started yesterday with a further move to the upside in today’s trading. In the process, the price has,
- Moved back above the 38.2% of the 2012 range at 81.054 (see chart above)
- Moved above the trendline at 81.10.
- The 81.05-10 is now support.
The 5 minute chart (see chart below) is showing some signs of topping, however.
- The 100 bar MA is flat. This is suggests the trend move is over (see blue line in the chart below)
- The price has moved below the 100 bar MA at the 81.377 level. Stay below and the bias intraday is down.
- The price has broken and is now below trendline support. This suggests a top may be in place for now and a consolidation/correction is in play.
All is not so bearish intraday,however. The price does need to get below the next target at the 200 bar MA and 38.2% of the days trading range. That level comes in at the 81.27 level currently for both of those indicators. If the price moves below this level, there could be a test of the 81.05-10 area outlined above. I would expect buyers against the level on the first test.
A move back above the 100 bar MA at the 81.37-40 area
