Tests 50% retracement level
The USDJPY has retraced 50% of the move down from yesterday at 111.483. The high today just ticked to 111.473. The 100 day MA looms ahead at 111.56.
Honestly, from a technical perspective there is a lot of "stuff" above and below (see red and blue circles. They are the targets). The price has been waffling up and down over the last 5 or so days. That price action is also been around the longer term 100 and 200 day MAs. From 111.37-112.075 there are the:
- 100 hour MA at 111.367
- 100 day MA at 111.56
- 200 hour MA at 111.715
- 200 bar MA on 4-hour at 112.013
- 200 day MA at 112.075
The 50% at 111.48 and the 61.8% retracement at 111.65 are also in play.
For trading purposes, it is about getting through those "minefields" on the topside. Get above the 100 day MA, and the 200 hour MA is the next target (and so on).
On the downside, a move back below the 100 hour MA should solicit more selling. There is not a lot of support until the 110.77-82 area and then the low for the week at 111.617.
The better tone in the dollar since the bottom today (failed on the dip below the low from Tuesday) has led to 9 of the last 10 hourly bars being higher. The last hourly bar closed at 111.43. We are just above that now, trying to stall the rally below at the 50% (we just moved above)...but if broken will battle with the 100 day MA.....then the 200 hour MA.....200 day MA, etc.
Just follow the steps.
PS on the downside, the 200 week MA is at 111.20. That level will also be eyed if the current rally fades. On the topside, the 100 week MA is at 111.927.
You can add those two levels to the technical picture as traders try to figure out which way "the market" wants to go around this neutral area full of technical minefields.
