Forex technical analysis: USDJPY higher on the day, but...

Technical Analysis

Author: Greg Michalowski | forex-technical-analysis

Something about it....

Maybe it is Donald Trump later today, maybe it is a move back below the 100 hour MA.  The USDJPY is higher on the day, but....

Bond yields are not doing much. Sitting at unchanged across the curve. 

Technically, the pair stalled against the 100 hour MA earlier in the Asian Pacific session, then pushed above the MA line in the London morning session.  We are trading above and below that MA line currently.  The last hourly bar closed back below it, but.....

.... Looking at the daily chart, the 115.96-116.11 has been swing levels on the daily chart.  The last 4 trading days have traded above and below that area. We are above that area now. We were below it earlier in the European session. 

I can't really say that the area is all that important technically as a result of the moves above and below the area over the last 5 trading days (see yellow area in the chart above).   

Perhaps....maybe.... the market is unsure of the move that took the price above that area in December on the way to 118.60 high.  Maybe it wants to get more information from the Fed, from bond yields, from stocks, from Trump.  Let's face it, the move up from the election low in the 101.00s to the 118.00s was a big run up.  Consolidation is not a great surprise. 

So a bit ambidextrous from what I see today.  Treat the market as such. Patient. Pick spots.  Stay out and watch. Take profits along the way.  Try not to get caught buying highs or selling lows unless there is a concrete reason 

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