USDJPY completes descending and ascending round
The USDJPY moved lower on flows to safety in the JPY during the Asian session.
However, after hitting the lowest level since Feb 3 and approaching the 100-day moving average at 114.34 (the low reached 114.405), the sellers turned the buyers against the key defining level the risk.
The return to the upside in the morning session in London took the price back to a swing zone between 114.69 and 114.782. At the start of the New York session, the strong buying of the US Dollar helped push the USDJPY even higher.
Price has now retraced all declines from the Asian session and is testing the 200 hourly moving average at 115.16 on the upside (price high just hit 115.174). The 38.2% retracement is also in the area at 115.141. Yesterday’s high reached 115.194, and Tuesday’s and week’s high reached 115.23.
So there is a lot of upside resistance between 115.14 and 115.23. As a result, there could be sellers against the zone with stops on a breakout of 115.23. The whole area and a return to the 100 hour moving average at 114.926 would be in sight.
Alternatively, a break above would target the 50% midpoint of the move down from the February high which intersects at 115.369.