High for the day 100.90
The USDJPY is trading near the highs for the day. That high came in at 100.905 The pair is currently trading 100.86.
Looking at the 4-hour chart above, the low for the day (which occurred in the first 4-5 hours of the trading day), looked briefly below a lower trend line. However, it was just a brief peek. The low was set, and after one final test that held the trend line, the move higher was on.
That move higher has now taken the price above 100.62-67 which was a floor from August 2 and a ceiling on August 25 and 26 before breaking higher. Yesterday the price fell to this area on the FOMC stuff, tried to bounce, but failed and that led to the move to the lows.
When you see these breaks, and/or tests of technical levels that hold like the lower trend line (reference the EURUSD at a high trend line today), you need to take notice. The markets are not exactly trending. Lows are bought, Highs are sold. We are nearer a low and above the technical levels outlined.
The next target above would be at the 101.11. This is the 38.2% of the move lower and also swing lows from September 7th and swing high from August 17th (see red circles 1 and 2). A move above that area puts the pair back in the meat of the recent range for the pair.
We are making new day highs as finish up typing.
