Up and down volatility in the USDJPY today
The USDJPY has had a number of swings in trading today.
In the Asian session the initial move was to the downside. The price bottomed near 103.938.
The run back to the upside in the European session saw the price move above the 50% retracement of the December trading range at 104.206 and also above the 100 and 200 hour moving averages (blue and green lines). Those breaks should have triggered additional buying momentum, but instead led to disappointed buyers after the price broke back below the broken levels.
The New York session low dipped below the Asian session low at 103.938 to a new day low of 103.916. The up and down lap was complete.
What now?
Over the last 11 or so trading days, the price of the USDJPY has seen a bigger up and down trading range between 103.665 and 104.756. Today's up and down price action was a smaller version of the larger ups and downs and reflects the markets uncertainty. Having said that, the inability to stay above the 100 and 200 hour moving averages and the 50% retracement tilt the bias more to the downside. Nevertheless getting below the 103.898 to 103.938 is the 1st target to get to and through. Below that the 103.82 level is followed by the 103.69-71 area before the low price at 103.665.
Buyers on the other hand need to get back above the 104.206 to assume more control.
