First test of the MA stalls the fall in an up and down trading day
The USDJPY have moved up and down in trading today. The pair closed at 111.01. The high reached 111.18. That high traded just above the underside of a broken trend line on the hourly chart below.
On the move to the downside, the low just reached 110.789. That was right at the 100 hour MA (blue line in the chart above). The first test of that MA, stalled the fall. The price is trading at 110.92 on the bounce.
The buyers have the most resent edge with the nice bounce off the 100 hour MA. Can the 111.00 level be broken?
There is a modest $571M of option expires at 111.00. At 110.25, there is a larger $1.1B expires. Does the 111.00 attract a test into expiration. The buyers on the dip are hoping.
US stocks are still expected to open with modest gains. Yields are nearer to unchanged, down a smidge from the early NA opening level.
PS. On more upside, the daily chart targets 111.47 which was a swing high from January 18th. The high for 2018? 113.38. The pair is above the 61.8% of the move down from the November 2017 high. That comes in at 110.859 and a move back below that level (and then the rising 100 hour MA would be more bearish. Be aware.
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