November 26, 2022

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USDJPY gets closer to the March 2020 high. Backs off.

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2020 high comes in at 111.709. The high price today extended to 111.622

The USDJPY continued its run to the upside started yesterday. The JPY was the weakest of the major currencies yesterday (higher USDJPY) with the price moving up to test the highest level for 2020 near 111.109. The high price actually surpassed that high but only by less than a pip  (111.115 was the high).  

2020 high comes in at 111.709. The high price today extended to 111.622_

Today, the price broke more convincingly to the upside in the Asian session. The high price 111.622. That was just short of the March 24, 2020 swing high of 111.709.  Sellers have corrected the pair modestly lower since then with the price currently trading at 111.46.

Drilling to the hourly chart, the high price yesterday stalled against the earlier month highs and dipped modestly in the Asian session. The low price, however, could not get below the Monday high price of 111.02.  As a result, the move back above the 111.109 level soul more momentum buying which continued for the next 4-5 hours to the day’s high.

Since hitting the high, the price has corrected down , but has found support buyers between the 38.2%-50% area (between 111.322 and 111.392.  In a trend-like move, holding that retracement area keeps the buyers more in control.  A move below intraday today, would tilt the bias more to the downside (in the short term). 

USDJPY on the hourly chart remains bullish above the 38.2-50%

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