High today in the USDJPY reached 108.61. High on Friday at 108.63
The trading activity is narrow in the USDJPY today. The low to high trading range is only 34 pips. The 22 day average is 53 pips. So there is room to roam, but if it is to the upside, traders will need to push the price above the highs from last Friday at 108.63. The high just extended to 108.61, but backed off. We currently trade at 108.55.
Looking at the hourly chart, the run up on Friday took the price above both the 100 bar MA on the 4-hour chart at 107.922 currently (blue line in chart above) and the 200 bar MA on the 4-hour chart (green line) currently at 108.401. On Friday, the price traded above and below that 200 bar MA as the market decides, "what next?".
Staying above that MA line today/going forward, keeps the buyers in control. A move back below, might see traders take the pair lower with 108.256 (38.2%) and 108.00 the next downside targets. The 100 bar MA on the 4-hour at 107.922 (and trend line - see chart above), should be a strong "line in the sand" for the pair (i.e..shouuld attract early dip buyers against the level)108.796.
On a break higher, the 50% of the move down from the May 21 high comes in at 108.715. Above that the June 11 high at 108.796 (high for June) and the 109.00-02 area will be eyed.
