Credit: Shutterstock photoBullish start to the year but running into topside resistance. Tests a support level
The USDJPY is off to a bullish start in 2017. Looking at the hourly chart below, the price moved above the 200 hour moving average (green line in the chart below at 117.355 currently), and surged to a high price of 118.34.
The move higher has run into some topside resistance against a trend line on the daily chart at 118.41 (see chart below) and has rotated back lower (we are currently trading around 118.10). Should the buyers return, the top of a resistance area defined by swing levels going back to Feb 2015 is another hurdle above. That resistance area is defined by the 118.06-118.51 price levels. In December, the price moved above that level to a high of 118.63, but the move was reversed and the price corrected lower.
With the price back lower, it is support which traders are eyeing. We are currently testing that 118.06 lower area level from the daily chart. Will the buyers come in and support the market right here? A move below 118.00 will likely be a stop for dip/corrective buyers.
Positive/bullish for the USDJPY is that the correction off that December high stalled at the 116.00 area. Like the 118.06-118.51 area, the price area from 115.96-116.09 has been a swing level (see blue circles in the chart below). Staying above that area showed buying interest on dips for the USDJPY.
Drilling into the 5- minute chart, the 118.06 was a swing low in the London session. It is also where the 100 hour MA is currently located. Stay above is more bullish from that shorter term perspective.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
