Resistance target stalls the rally
Yields are back down with the 10-year back to unchanged after being up 4 bp a few hours ago. As the yields were peaking, the USDJPY was touching the 100 bar MA on the 4-hour chart and 38.2% of the move down from the high from January 3rd. The price had not traded above the 100 bar MA target since January 9th.
In the earlier post, I commented:
"With the range extended, that MA above should solicit some profit taking on the first look, but watch 114.53-60 for support clues. If it can hold a correction, the buyers are still in frim control in this trend move higher."
The resistance held as anticipated, but the 114.53-60 level has not held support. The waters are muddy now.
Looking at the 5 minute chart, the price has dipped to the 100 bar MA. Other support comes in at 114.16.
The holding of the key resistance above was anticipated. Profit takers/Sellers leaned where risk could be defined and limited. Now with the price lower, the sellers above will clash with the buyers from below. Look for some up and down action as the battle plays out. We could go either way now.
