Buyers making a play
The USDJPY has been consolidating in a narrow trading range today, but the pair remains above a key swing area that keeps the buyers more in control.
Going back to Friday, the USDJPY started the most recent push higher by basing against its 100 hour moving average (blue line in the chart above).
On Friday and again on Monday, the pair based at the 200 hour MA (green line) and moved higher. That two was bullish and gave the buyers more confidence to push higher.
Yesterday the price moved above a swing area between 109.839 and 109.952. More bullish as well.
Today, the pair has consolidated in a very narrow 18 pip trading range (the 22 today averages 52 pips), but has been able to stay above the high of the swing area at 109.952. The low today reached 109.98. The trade today is neutral, but the overall bias remains more positive.
If the buyers can stay above that swing area, the next target comes in at 110.19. Above that is the swing high from June 4 at 110.324. Moving above that level would take the price to the highest level since April 6. The high price for 2021 reach 110.96 back on March 31. That would be the next target.
Move above the 2021 high, and traders will start to think about the high price from 2020. The highest prices going back to March reached 111.696. The high price from February reached 112.238.
Although there is nothing to write home about with regard to the price action today, the bullish bias remains. The sellers have not been able to take back control that they relinquished last weekend into this week.