Credit: ... the low close for the year (before this week that is)
The low close for the year was 100.487. That was also the lowest close going back to November 20, 2013. On Tuesday, the price closed below that level (100.299). Yesterday, the price closed below at 100.257. Today the high has stalled at 100.482.
Looking at the hourly chart below, yesterday the price held near the 100 hour MA (blue line) and the 50% of the move down from the August high to the August low. That area was between 101.08 and 101.13 (the high ticked 101.16). Nice hold there. The bears showed their stripes. That 100 hour MA (and also trend line) comes in at 100.67 now. The 38.2% of the August move is at 100.71. That is a key level to stay below too.
That is all the bearish news.
The not so bearish news is that the sellers have not been able to take advantage of life below the all important parity level of 100.00. I know it is just a price but it is a big price level and On Tuesday and again today the pair fell below the 100.00 level and got up to 50 pips below but that is it.
So overall, the bears are keeping a lid on the USDJPY at all the right places (100.487 and the 100 hour MA - also watch 100.71), but getting and staying below the 100.00 level would be nice too. Traders liking the upside, can lean in the 100.00 to 100.15 area (see yellow area in the chart below). At some point, there will be a break and run.
Which way do you think it will go?
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.
