Lots to digest but support MA holds
There is a lot to digest, with ceremonial stuff still in progress (and will continue all day). That - and the weekend started in the UK and Europe - has the forex markets quiet.
The USDJPY did move lower but traders have respected the 200 hour MA at the lows (green line at 114.536). Earlier in the day, that MA was also where buyers came in.
For the week, the price is higher but only a little. Last Friday, the pair closed at 114.47. We trade about 50 pips higher. The low did extend down to 112.559. The high - reached yesterday - stalled just above the 50% of the move down from the 2017 high reached on Jan 3rd. That 50% comes in at 115.58. The high yesterday reached 115.61.
Being higher on the week, above the hourly MA (blue and green lines at 114.08 and 114.536 respectively), is positive/bullish. There is upside work to be done for the bulls with topside trend line, the 50% and the 100 and 200 bar MA on the 4-hour chart as upside targets.
Looking at the weekly chart, the price has moved back above the 100 week MA at 114.576. That is close to that 200 hour MA. The weekly MA was breached to the downside last week (and closed below it). That may have helped contribute to the continuation lower into the week's low. The rally back above is good news for the bulls as we head out of this week and into the new trading week.
Next week, with the 200 hour MA at 114.536 and the 100 week MA at 114.57, put a big asterisk at that level as important for the bullish bias to remain in tact. Stay above bullish. Move below, a bit more bearish again.
