Trend lines moving averages are the defining support and resistance levels
The USDJPY is higher on the day after a run up in the Asian session. However the pair is also confined by trend lines and moving averages on both the topside and bottom side.
Looking at the hourly chart above, the high price today stalled against a topside trend line. That trend line currently comes in at 107.91. Just above that is the falling 200 hour moving average at 107.942.
On the downside, the early Asian session saw the price move above its 100 hour moving average (blue line). The fall from the high today stalled ahead of that moving average currently at 107.535. Below that moving average is a rising trend line at 107.443. Those two levels will need to be broken to increase the bearish bias.
The pair trades closer to the higher extreme at 107.81 currently. Until there is a shove one way or the other, I would guess that traders should look to lean against the extreme technical levels on tests with stops on breaks with momentum.
