The 100 and 200 hour MA is finding some sellers after US factory orders
The USDJPY moved higher in trading today and in the process reached back up toward the 100 and 200 hour MAs at 108.462 (blue line) and 108.581 (green line) respectively. The 50% midpoint of the move down from the high last week, is also at 108.581 increasing that levels importance.
The weaker than expected factory orders has stalled the rally a bit but the not by a lot so far. The pair dipped to 108.41. The high for the day reached 108.51.
With a modest decline, there is a chance for a test of the 200 hour MA and 50% retracement level. If the price is able to extend higher, look for sellers on the test. That combination tends to attract profit taking action on the first look (with close stops if the level is broken with some momentum).
On the downside, the 38.2% of the range last week is at 108.415. If the buyers canot push higher and this area is broken below, the buyers could tilt back to the downside with 108.25 a support target.
In releated markets:
- Stocks dipped off highs after the factory orders but still remains solidly in the black
- US yields remain higher with the 10 year up 6.3 bps
- Gold is lower (tends to support the USD). It is down -$4.11 or -0.27% at $1510
