Most important to me is the support below....
The USDJPY is back up trying to get and stay above the 110.00 level again.
IN an earlier post I spoke of the 100 hour MA and the 50% retracement at the 109.84 level. Two key technical levels and that level was broken and the price squeezed up to 110.047.
However, the momentum faded and the price retraced back down to the 109.84 level again. The level where the 100 hour MA and the 50% were located.
Looking at the hourly chart, that support level held. RIsk was defined and limited and some traders leaned against that level and they have been rewarded.
What now?
Well, the buyers remain in control. The 100 hour MA and the 50% become more important on the successful test on the dip. The question now is, "Can the 110.00 level stay broken? Can the price extended higher and move toward the high from Monday (at 110.23), the high from last Thursday at 110.37 and the high from Friday at 110.58?
So far, the move to new highs (by 2 pips) is a disappointment for the buyers. That may result in some cautious selling, but if the topside is liked, the key level to worry about is a break back below the 100 hour MA/50%. That is key for me.
