USDJPY moves to post FOMC highs

The Fed is back to square one. What can you say.

So we go onto the new day.

For the USDJPY, the BOJ is up later today. Will they look at the window and open it to their benefit? Will they lay low and let the cards fall where they will fall. One can argue, the best policy is to keep the US afloat. Fundamentally, you can spin round and round until you get physically sick from all the spinning.

So the good news is we traded a range today that has defined a low and has defined a high.

  • The 100 hour MA held resistance above at 106.33 (Make sure it gets and stays above 106.43. There is trend line there are
  • A trend line and the Dec 2013 swing low at 105.44 (the low reached 105.419).

Earlier today the sellers made a stand above. Advantage sellers.

More recently, buyers made a stand at support. Advantage back to buyers.

Volley back to the sellers against the 100 hour MA (up to 106.425?)

A break higher and the 200 hour MA will be the next hurdle (green line in the chart above) at the 106.69 currently. Above that 107.25 (high from Friday0. 107.49-107/65 were swing highs going back to early April

On the downside, the 105.54 (low from May), The 105.41-44 area is the next target (high from Dec 2013 and low for the day). Then the 105.17 (low from October 2014). A move below that, opens the door for further declines.

The BOJ decision will be eyed and what they have to say. No change is expected.