The USDJPY moved lower in the Asian session but ran into support against it's 200 hour moving average (green line) currently at 122.475. The price moved back above that moving average on Friday after bottoming ahead of its 38.2% retracement of the move up from the March 4 low on Wednesday and Thursday of last week. The inability to move below the 38.2% retracement gave the buyers more confidence to push the price higher from a technical perspective.
The USDJPY price has remained above its 200 hour moving average since the break higher on Friday
Although the support has held against the 200 hour moving average, the topside has been restricted as well. Looking at the hourly chart, the high price from Friday, yesterday and again today has stayed below a swing area between 123.02 and 123.188. It would take a move above that area to increase the bullish bias.
So a battle is on between support near the moving averages (the 100 hour moving average at 122.32 is also in play on the downside), and resistance against a swing area. Those technical levels are defining the trading range.
It would take a move and shove outside of those levels to increase the bias in the direction of the break. Until then, buyers are leaning near the support - with stops below - and sellers are leaning against swing area resistance -with stops on a break above.
