The USDJPY moved down to test its 200 hour MA and 50% of the last trend move higher in the pair near 137.35. The low for the day reached 137.37 where buyers leaned and pushed the pair back higher.
More recently, the USDJPY has moved above a swing area between 137.34 and 137.859 as well as the broken 38.2% of the same move higher at 137.83.
The price just reached a new US session high at 138.04.
What's next?
The 38.2% and swing area has now switched to support. The sellers had their shot. They pushed briefly to and through the 200 hour MA, but found willing buyers near the 50%. Those dip buyers have been rewarded with a break back above the swing area and broken 38.2%.
The sellers?
Well they have been forced to cover.
The next upside target is the 100 hour MA at 138.293. If that level is tested, the buyers and sellers will have another decision and battle. Both yesterday and earlier today, the USDJPY has seen trading above and below that MA before making the run to the downside..
There should be sellers against the moving average level on a test, with stops on a break above.
