New high for the week rejected.
Yesterday, the USDJPY moved lower in early trading and made new lows for the week by a few pips. That extension was quickly rejected.. The price of the pair based and moved higher. The low for the week reached 108.24 - just below the Monday low at 108.276.
That move higher, extended above the pairs 100 and 200 hour MAs (blue and green lines around the 108.537-557 area currently) AND a channel trend line.
Today, the price moved to a new week high by a few pips (once again). That extension was also quickly rejected. The price has move back lower. The high today reached 108.748 - just above the earlier week high at 108.717.
The move lower just moved back below the 100 and 200 hour moving averages but stalled near the underside of the broken trend line at the 108.51 level after the weaker than expected durable goods orders. However, the price has stabilized and currently trades at 108.58.
Overall, the pair has moved higher, lower, and higher again before rotating, near the middle of the range and the technical support area. The range is only 51 pips as the market traders battle near the highs going back to early August (see daily chart below).
If there is a break to the upside, the 200 day moving average looms at 109.048. The price has not been above that moving average since early May. On the downside the 50% retracement of the move down from the April high comes in at 108.413. The price has traded above and below that level this week, but should it be busted again the on the lookout for increased downside momentum.
