December 7, 2022

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USDJPY bounces back between the 100/200 hour MA

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Pair bounced off the 100 day MA yesterday

The USDJPY bounced back higher today and in the process has moved back above its 200 hour moving average (green line)  at 110.037, and is testing the 100 hour moving average (blue line) at 110.180 currently. 

Pair bounced off the 100 day MA yesterday

Recall from yesterday, the price fell below that 200 hour moving average in the New York session yesterday (after a failed break earlier) and stayed below.  

The subsequent move lower did find support buyers near its 100 day moving average (currently at 109.558).  The low reach 109.577 (close enough for risk focused traders), and started a rebound higher.  

In addition to the technical bounce off the 100 day moving average, the pair is also being helped fundamentally by rebounding stocks, US yields are higher and perhaps some anxiety about the FOMC decision and a more detailed taper plan and schedule. 

A break above the 100 hour moving average should solicit more buying with a target area between 110.324 and 110.389. The 50% retracement of the July trading range comes in at 110.357 between that swing area.

Conversely on a move back below the 200 hour moving average, there should be a rotation back to the downside. The 109.80 area would be a downside target ahead of the 100 day moving average at 109.558.

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