The USDJPY is extending to a new high for the day.
The move higher today took the price above the swing highs from earlier this week and last Friday near 158.248. After reaching a high at 158.46. The price rotated back lower, tested the break level at 158.248 and found support buyers (red numbered circle on the chart above).
Holding that level gave the buyers confidence and the price has moved to new highs. The high just reached 158.742.
What next?
Well… the high going back to 1990 reached on April 29th extended to 160.208. That got within 20 pips of the April 1990 high at 160.40. Those are targets now.
A better question is where do the sellers take back control, even if it is the smallest of gains?
Looking at the 5-minute chart below, the 100-bar moving average comes in at 158.519 (and moving higher. The biggest correction today did fall below that 100-bar moving average (blue line on the chart below), but stalled ahead of the 200-bar moving average on the same chart. Going back to the three corrections today, the 200 bar moving average has helped support.
So if the sellers are to take control, they need to get below the 100 bar moving average on the 5-minute chart, and stay below that level. Absent that, and the sellers are simply not winning. The buyers are in control.
Moreover, getting below the 200 bar moving average (green line on the chart below) currently at 158.309 and moving higher would also be needed to show the sellers are “winning” something.
This article was written by Greg Michalowski at www.forexlive.com. Source