Support holds....
The USDJPY has bounced off the 100 hour MA/trend line combo at the 100.25-31 area (see prior post). The low extended to the trend line and 100.257. Bounce. Risk is defined at those support levels for longs. The buyers are trying but can they take it to the next level? They tried earlier in the day on the break above the 200 hour MA (green line in the chart below). That idea failed and the retracement of the range began.
Hey....last week, the price could not stay get above the 100 hour MA. Today, there have been two tries to trade back below and both those failed. That is something new. It does not mean the price goes shooting higher, it just gives something to lean against on the downside and from there, traders can see how the cards eventually fall. Back below or stay above and test that 200 hour MA?
Meanwhile, the EURJPY found buyers against the 100 hour MA and the 100 bar MA on the 4-hour chart and it too bounced on the the first test. The pair needs to now get above the 100 and 200 bar MA on the 5 minute chart to get the upside momentum going again (see yellow area in the chart below).
