High in October was near the highest level since November 6, 2017
The USDJPY moved up toward the October high at 114.691. The high price just reached 114.609 and backed off.
The high price from October 20 was the highest level since November 6, 2017 when the high price peak at 114.728 - just 3 or so pips higher.
Needless to say sellers leaned against that old high and in doing so increased the levels importance going forward. The high price today is respecting those levels so far. However a break should lead to stops and further buying on the break out.
Looking at the hourly chart, the sellers had their shot last week when the price moved outside of the red box between 113.211 and 113.28 (see red shaded area in the chart above). The inability to stay below that level (the pair found support buyers near the 50% midpoint at 112.754), gave the buyers the go-ahead to push to the upside.
After the US CPI data last week sent the dollar higher, the price moved above the 200 hour moving average (green line) and stayed above that level on corrective moves to the downside on Friday and again yesterday. The price declines saw the pair bottom within a lower swing area between 113.73 and 113.80.
In trading today, the price was able to get above the 114.307 level (high of another swing area between 114.203 and 114.307). That area is now risk for buyers. Stay above and there still hope for a run to and through the 2021 high and the November 2017 high.
