USDJPY technical story a mixed up one

Technical Analysis

Author: Greg Michalowski | usdjpy

Keeping it simple...

We know from earlier posts the ups and downs seen in the USDJPY.  It seems that headlines from a Bloomberg story saying BOJ Kuroda basically encourages a weaker JPY (or at least not a stronger currency), might have been leaked. 


However, the first rally higher (on the leak?) failed. The price moved from 109.40 back down to 109.00.   The 2nd rally on the "real" headlines took the price higher again, and we are now seeing that move failing as well.  

Technically, on the way higher the pair moved up to the 38.2% retracement and stopped right there.  On the way both up and down the price moved above and then back below the 200 hour MA (at 109.232 currently)  That should not have happened technically (see green line in the chart above).  

There is some bullish. There is some bearish. The move above and back below the 200 hour MA is a problem.  Get back above, and perhaps traders will give it free pass for the two failures.   But the reality is, the price action is not as bullish as I thought it would have been. 

PS Stocks are trading at high levels (should be supportive) and 10 year yield is also near high levels at 2.2427% (high is 2.2463%). 
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