The pair is in another trend leg higher.
The USDJPY has been trending to the upside, with limited corrections.
The move higher started in the Asian session after the pair moved back above the 100 and 200 bar moving averages on the 5 minute chart (see blue and green lines in the chart above). The 1st trend leg higher took the price from 102.944 to 103.242. The correction off that level held near both the 50% and the 200 bar MA near 103.093. Holding support give the buyers the go ahead 2 push higher.
The next bigger trend move began. That trend move took the price from 103.09 to 103.742. The correction off that high moved toward its 38.2% retracement at 103.494 - bottoming just above that level at 103.513.
The current trend leg higher is in progress. So far, the price has moved from 103.513 to a high at 103.938. The 38.2 to 50% retracement of that move higher comes in at 103.726 to 103.776. If the price can stay above that area (the highest yellow area in the chart above), the trend is still intact. The buyers are still in firm control.
What may give the trend traders some cause for pause can be seen on the hourly chart below. The 103.885 to 103.938 area is home to a number of swing areas going back to December 7. The 61.8% retracement of the move down from the December high is also in that yellow area (see red numbered circles in the chart below). The high price today has reached 103.940 and has backed off. Be aware. There may be a time for a pause in the trend as a result of reaching the swing area.
