Sideways into the 100 hour MA convergence
Not a lot is going on in the USDJPY. The pair has tried to move lower, but is back near the narrow trading range highs. The low reached 110.86. The high reached 111.34 in the Asian session and 111.31 in the London session.
The sideways activity over the last 3 days, has given the 100 hour MA time to catch up to the price (blue line in the chart above). Typically, that can ignite some reaction one way or the other by trades. It also says "the market" is in balance with buyers and sellers both happy (or perhaps just not interested). The 200 bar MA on the 4-hour chart is also in the area and going sideways.
That market dynamic ok for a while. However, traders don't make money when the market goes sideways. Hence, the alert to you, to stay alert for a move at some point. The MA can be barometers for a more bullish or bearish sentiment. The recent lows become targets to get through on the downside if the market goes that way. On the topside, there is a topside trend line to get through (and stay above). The correction off the move lower has stalled ahead of the 38.2% retracement level at 111.812. That will be another level to get above if the bulls are to take more control.
In related markets today:
- US pre-market stocks are higher. S&P futures are up 3.75 points and the Nasdaq futures are up 13.75. That can be bullish.
- US bond yields are lower with the 10 year down 1.7 bp to 2.2362%. That can be bearish.
So ambiguity from those markets for the USDJPY.
