Extends narrow trading range and tests 200 hour MA
The USDJPY has broken back above the yellow area which is home to a number of swing levels, and in the process tests the 200 hour MA.
Buyers - looking for a break and extension of the relatively narrow trading range of 36 pips (the average is 73 pips so there is room to roam) - want to see the 200 hour MA at 112.374 broken with the 50% the next target at 112.54. If the 200 MA holds, the sellers will need to push back below the yellow area.
The buyers are making the play and getting above the yellow area is the technical catalyst (now support). The inflation data is trying to be the fundamental catalyst.
