Price breaks 200 hour MA but stays above 6 day low
The USDJPY is lower. The price moved away from the 112.815-93 level (was a swing level going back to June/July - see 4-hour chart below), moved between the converging 100 and 200 hour MAs at 112.697 and 112.473 currently.
The price also cracked the 200 hour MA after the last three tests found support buyers against the MA level (green line in the chart below). That break has not been able to build much momentum. The 6 day low from Friday reached 112.20 and that would have been the next downside target to get to and through. The low today could only reach 112.31.
PS the range over the last 6 days is only 106 pips. The lowest trading range for a calendar week going back to Christmas week 2015 has been 107 pips. We have a 106 pip range over the last 6 trading days. Very narrow. Not a lot going on.
Although the range is very narrow, the longer the market non-trends, the better chance for a move and a run. A move above 112.93 would be the 5th look above the upside resistance level. Each has failed over the last 6 days. Nevertheless, I would expect buyers on a break with the high from last week at 113.25 the obvious next key target (you can't extend the range without taking out the high).
On the downside, despite the failure below the 200 hour MA today, that MA and the 112.20 remains on trader's radar. Also, be aware that the 200 day MA at 111.926 is another key level on the downside to get to and through. A break below that level would open up the downside for further selling.
For now the market swings up and down, but with a little negative bias. We will see if the levels above can keep a lid on any rally and that bias can be built upon.
