Watching intraday trade levels on the correction
The USDJPY trended higher yesterday with the pair staying in a channel and above the 100 bar MA on the 5-minute intraday chart (the 5 minute chart works well in a trend move).
Late in the day, the price fell out of the channel, and made some other technical turning moves including:
- Falling below the 200 bar MA on the 4-hour chart (currently at 107.589),
- The 100 bar MA on the 5-minute chart (blue line currently at 107.458), and
- The 200 bar MA on the 5-minute chart (green line currently at 107.498).
Looking at the chart above, the 200 bar MA on the 4-hour (overlayed) held resistance in the London morning session.
The 200 bar MA also held resistance (twice most recently). The 100 bar MA is now trying to put a lid on the pair.
In the buyers court, is that the corrective move of the move higher yesterday has held above the 38.2% at 107.262 (the low reached 107.30 so far). If the technical picture is to deteriorate further, a move below the 38.2% retracement and lower trend line is needed. If not, this is just a plain-vanilla correction of a trend move higher.
So sellers have made a play today and have leaned against levels to prove their point, but there has been a limit to their downside move at the 38.2% retracement of the trend move higher yesterday. Traders are leaning and waiting for the next shove.