Markets

Forex trading: USDJPY moving up and down in narrow range

Re-established trend line....

Sometimes a decent trend line is broken, then the price rebounds and fails. It may do it again and fail again. The next time the sellers don't push below the trend line, but instead buy. They re-establish the trend line as support.

That is how I read the USDJPY hourly chart today. Sellers tried to sell below yesterday and again today, The last test (at 101.20) held and the pair is back up to 101.37. Do the sellers give up and push higher from here.

Well so far so good.

Where could it go?

Well the 101.63 to 101.81 has the 200 hour MA, and 100 hour MA to get through. Yesterday, the pair tried to hold support against the 100 hour MA (blue line) and failed. The break sent the pair sharply lower). Since then the MA have reversed positions with the 200 hour MA below. Both will make it tough on a test. But the re-established trend line solidifies that support again. Stay above is more bullish. Move below, all bets are off.

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.

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