The spring is coiling. Do we get a break and run?
Technical levels in the USDJPY are converging.
- The 100 hour MA is at 110.835 (flat)
- Trend line from the Jan high comes in at 110.877 (and moving lower)
- The 200 hour MA (green line) comes in at 110.979 (and moving lower)
The convergence of the levels suggests the market is non-trending. Eventually, the market will transition from non-trending to trending. The spring is coiling. Be on the lookout for a break and a run.
ON the downside the lower trend line on the hourly comes in at 110.57. A move below will look toward the swing lows at 110.48 (low form Friday), 110.32 (low from last Monday) and 110.186 (low from last Wednesday and low for the year).
On the topside, a move above the 200 hour MA would look toward the 38.2% at 111.406 and the high from last week at 111.477. A move above that, and traders will be eyeing the KEY 200 day MA at 111.743. The last test of the 200 day MA on Jan. 12, stalled against that MA line and rotated lower (kept the bears in control).
