The USDJPY stalled at the 100 hour MA and 38.2% retracement
The USDJPY has backed down from the 100 hour MA at 109.723 (blue line in the chart below). The 38.2% of the move down from last week’s gap lower high is also at that area at 109.754. The high for the day reached 109.767 and 109.757 on the two highs for the day.
The fall has moved to the lows from May 9 and May 10 at 109.466 and 109.449 respectively. The low just reached 109.44.
Clearly, traders are picking spots to lean and keeping options open. The overall trend/bias is still tilted more to the downside (being below the 100 hour MA should keep buyers cautious). However, there is hope that if stocks reverse and move higher. That the tone of US China changes, that 100 hour MA can be broken. Was it done yet? Nope, but if it is broken, there could be more upside.
Until then the battle line for this pair is at 109.44-46 and 109.72-754. That’s the battle zone NOW.