Support levels stall the fall
The USDJPY continued the fall today after a late afternoon move higher yesterday, stalled near a topside resistance area in the 113.649-699 area (see red numbered circles in the chart below).
The fall took the price below the rising 100 hour MA (blue line). The next target became
- The 50% retracement at 113.165
- Swing levels around the 113.13-17 area
- The rising 200 hour MA (green line) currently at 113.127
That area is a key support cluster that gave buyers a low risk defining level to stick a toe in the water. Stay above is more bullish and look for a move back toward the 100 hour MA at 113.45. Move below, and get out (sell). The low price reached 113.18 and bounced.
Taking a broader look at the daily chart, the high yesterday also stalled right at a topside trend line. The low today stalled right at a swing high going back to July. That increases the importance of the lower support level.
We trade in the” battle zone” between the cluster of support below and the 100 hour MA above. There are low risk trading opportunities between each level. We currently trade between those extremes.
At some point, there will be a push one way or the other. Right now, it is more of a coin flip with traders leaning against the technical levels.