200 hour MA and trend line approached
The USDJPY is being supported today by a better tone in the stock markets (or so it seems) and let's face it, better US employment data from last week. The German Dax is up 0.59%. That index tested the high for the year at 10485 level. That ceiling has been tested 3 other times this year and failed. On Friday the S&P and Nasdaq closed at all time high level.
Looking at the hourly chart for the USDJPY the pair rose on Friday after the better US jobs but the gains were pretty modest. The price rose above the 100 hour MA (blue line) for the first time since July 29th. The 200 hour MA becomes the next upside conquest. The 200 hour MA currently comes in at 102.545. The downward sloping trend line at 102.58 is not far behind. The high last week peaked at 102.82. Other targets at recent highs and lows are at 102.66 and 102.82.
A move above this area is needed to give the pair another boost going forward. Of course buyers from below could also use the initial test of the 200 hour MA as a low risk level to sell/take profit with stops above. A correction will then likely be bought
Looking at the 5-minute chart, the pair has been tracking a trend line which currently comes in at 102.41. I know it is really close but there are 4 separate tests of the line.
A battle is on between support on the 5-minute trend line and resistance against the 200 hour MA. Which side will win the next battle? The buyers have been the dominant so far. Can they continue? With little in the way of economic activity today it may be a stock trade. The S&P index is trading up 2.5 in premarket trading. The Nasdaq is up 5.0.
