Trend line proves its technical importance.
The USDJPY squeezed higher yesterday and in the process, squeezed up to a topside trend line (currently at 112.53). That trend line did a good job of giving buyers cause for pause. The price eventually dipped lower.
The NY afternoon low went down to a low at 112.183. That took the price below its 200 and 100 hour MAs (green and blue line) at 112.364 and 112.247, but the price bounced (helped by the stock rebound into the close?).
What we learned is that the trend line has proven it’s technical importance. If you like the upside, get above that line and stay above would be more bullish. The highs at 112.668, 112.739 and the 13 day high at 112.881 would be targeted (PS. there can be failures too. Reference the fall below the 100 day MA on Friday that failed)
Bears – or shorts from above at the trend line, want to see the 100 hour MA broken at 112.247 now and also get below the 13 day midpoint at 112.126. From there, heading back toward the swing lows would be eyed.
Overall, the USDJPY remains in an up and down range with most of the trading range between 111.617 and 112.88. That is not a lot of range for 13 trading days. At some point the range will be busted, but for now, I would expect the market to pick spots (like the topside trend line) to lean against. If it works, great. If it doesn’t, get out (and maybe go the other way).