The USDJPY has had another down, up and back day so far with the pair confined to a 37 pip trading range (versus an average of 77 pips over the last 22 trading days). The high prices reached above the 200 hour moving average at 113.646 (high reached 113.71), but below its 100 hour moving average at 113.729. The low price extended to 113.33 which was near the low of a swing area between 113.33 and 113.365.
The current price trade between those extremes at 113.505.
What's next?
The ups and downs continue, but a support area held, and so did a resistance area. As a result traders will trading that range until the price breaks out.
A move below 113.33 will have to deal with a another swing area between 113.217 and 113.264, but it will tilt the bias further to the downside with a break of that area leading to another step lower.
If on the other hand, the price moved back above the hourly moving averages, it would open up the door for further upside momentum. The high from Friday came in at 113.851. Get above that level opens the door toward 113.954, and the 50% midpoint of the move down from the November 24 high at 114.019.
