Price action using MA as risk defining level
The USDJPY has been using the 100 hour MA (blue line) as a barometer for bullish/bearish (blue line in the chart below).
Back on August 28 and 29th, there was some wobble above and below the 100 hour MA, but the price action has done a pretty good job at using that MA as a barometer for bulls and bears. On Thursday last week, the price fell below the 100 hour MA and stayed below until today when it - and the 200 hour MA (green line) were each busted (above). Bullish.
The price pushed higher and stalled near swing levels in the 111.48-51. Remember that level going forward. The price fall off that high area, took the price down and where has it bottomed? The 100 and 200 hour MA lines. The pattern continues.
Traders are using the level to define risk and define the bullish bias. Stay above is more bullish. A break, and the buyers are likely to give up and sell instead.
ON the topside, the 111.386 (61.8%) and that 111.48-507 area both need to be broken and stay broken and the high from last week becomes the next target.
The bulls are in control. How much "bull" they have in them is the question with the 111.48-51 a key target.
Stocks are red in pre-market trading. The US yields are moving higher with the 10 year up 1.6 bps and the 30 year up 2.9 bps now (near highs for the day).
