Looks to test trend line on the hourly
Data driven or flow driven (there was a lot of stuff released) - I don't know - but the USDJPY is trading at new session highs.
The pair is trading in a very narrow 47 pip trading - which is well below the month average of 137 pips. The price increase has moved closer to a topside trend line which cuts across at 117.90. The price is moving away from the 100 hour MA at 117.60. That is now a risk level for the buyers. The price based against that MA over the last few hours of trading. So buyers against that level will likely give up on a break below that MA line.
The pair is higher on the day - closed at 117.54. Another key level to get and stay above would be at 118.06. That was the high from yesterday and also defined a floor area (from 118.05-118.51) going back to Feb 2015 (see chart below).
Remember, the trading is likely being dominated by flows vs any BIG trading plays. Traders or trades that take the price up (or down) can easily turn the bias around if they are not getting satisfaction from continued momentum. If the price runs into resistance or if those buyers now have to deal with a deal flow from customers in the other direction. With liquidity conditions lighter, the moves can seem herky jerky.
