USDJPY tests swing area and 200 hour MA

Technical Analysis

USDJPY coiling in a narrow range around technical levels.

The USDJPY high today reached 108.72. The high yesterday reached 108.717 (so call it a double top for Monday and Tuesday).

The low today for the pair stalled at 108.444. The 200 hour MA comes in at 108.441. There is a swing area at the 108.441 to 108.471 (see red numbered circles).

The total range of 108.44 to 108.717 is narrow (28 pips). The average over the last 22 days is at 57 pips.  Something has to give at some point.  

I would give the sellers a little more of the intraday bias at least.

  • The price is lower on the day
  • The price stalled at the high from yesterday
  • The price is below the 100 hour MA at 108.601 too.

Having said that the swing area and 200 hour MA are putting up a good fight too.  Which way will the win blow? 

US stocks did dip into negative territory but are now back in the black (S&P index up 0.19%, NASDAQ index up 0.18%).

US yields are lower but off the lowest levels on the day (tends to weaken the USDJPY).

  • 2 year 1.6047%, -1.6 basis points. The low reached 1.5882%
  • 10 year 1.773%, -2.6 basis points. The low reached 1.762%
  • 30 year 2.257%, -3.4 basis points. The low reached 2.249%

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