The USDJPY has moved back above the 100 hour moving average (blue line in the chart above) as a pair follows the greenback’s move to the upside against the other currencies.
Earlier today in the Asian session, the price for the pair opened and stayed above the 100 hour moving average. Later toward the end of the Asian session, the momentum started to fail and the price moved back below. The London morning session kept the bearish bias (from a technical perspective).
Now, with the price moving back above this moving average, the shorts may be forced to cover and a look toward topside trendline at 102.616.
Admittedly, the action is back and forth. That happens as the market tries to figure out the next move for the pair. The range over the last 6 trading days is only about 68 pips. However, what can be said is that the break to the downside on Friday, did find support near the 200 hour MA and the 50% of the move up from the May 29th low the Juen 4th high (at 102.105). The holding of this level on Friday was an invitation for traders to go long. Now the question becomes, can the move back above the 100 hour MA be the catalyst for the next move higher.
The longs are back in control. Let’s see if they can keep control and get the price back above the topside trend line.
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