Trend line and 50% retracement area is topside targets.
The USDJPY closed near its 200 day MA yesterday after trading below the MA this week. Today, the price action was initially to the downside, but has moved above the 100 day MA in the London morning session and extended higher. New highs for the week have been made on the better, more bullish technicals.
Staying on the daily chart, the topside trend line connecting highs in May, August and last week too, comes in at 108.26. The 50% retracement area of the move down from the April high comes in at 108.413. The high from last week’s trading stalled to that area and stalled.
Getting above both those levels are key targets for the bulls now. Sellers, meanwhile, may look to lean against those levels as well. So be aware. The battle rages between the bulls and the bears, and each can exert their dominance, but for now the bulls above the 100 day MA seem to have an edge.
Drilling to the hourly chart below, the key for the last move higher came when support held at the old ceiling that turned to a floor at 107.418 yesterday (red circle 6). Today, the key for the bulls was the move above – and then basing – against the 100/200 hour MA (blue and green lines at 107.78 area now). That was the catalyst for the run higher.