Follows the dollars moves

The USDJPY moved up in London morning trading on the back of BOJ rumblings. That rally has continued with Rosengren's comments in the NY session. The price action has taken the price above the 50% of the move down from last Friday's high and the 200 hour MA (green line in the chart below). Those levels come in at 102.748 and 102.824. That is now now support for longs. Stay above and the buyers remain in control. As you can see, the correction off the break above has done just that in the current hour. So buyers are holding the line.

Contributing to the bullish bias today was the earlier move above the 100 hour MA. Yesterday, the price found sellers against the level and the price corrected. Today, when the MA was broken, the price scooted higher. The level increases in importance on a successful test.

With the 200 hour MA holding on the current hourly bar, it increases that levels support importance as well. If traders hold the line, the upside potential should increase. The 103.118 is the next target to get to and through.

A move below the 102.75-82 area, muddies the water.

Taking a broader view from the daily chart the old trend line has been broken to the upside. Now that trend line was broken last week and failed. So it is losing its importance. Nevertheless, it is a more bullish development. The lows are also getting higher. Overall, the market can be characterized as more two way/consolidating from that view. This has allowed the 100 day MA to start to catch up. It is still up at the 104.99 level but it is getting closer to the price level again. The price of the USDJPY has not been traded above the 100 day MA since Feb 2016.