Trend line and moving average keep a lid on the USDJPY
The USDJPY has been capped today against the underside of a broken trend line and the 200 bar MA on the 4 hour chart. The high today extended to 119.78. The 200 bar MA came in at 119.81. The underside of the trend line comes in at 119.88 currently.
The low for the day was reached soon after the weaker than expected US durable goods report (see chart below). Since then, the price has rebounded more that 50% of the move lower (see chart below). The market is waffling back and forth with activity more two way.
If I were to give a bias for the pair, the sellers remain in control off of the break of the 200 bar MA and below the trend line. ON the shorter term 5 minute chart, the price has remained below the 200 bar MA (green line). Moves above the 100 bar MA (blue line) have been limited. The 100 bar MA currently comes in at 119.49 while the 200 bar MA comes in at 119.58.
The market is not impressing to the downside, nor to the upside. So it can go either way. Will be watching the aforementioned levels to help define and limit risk. If the price is able to stay below, the sellers remain in control. If they move above the market is continuing to be more two-way.
