USDJPY buyers back in control, but pair is still in the up and down range.

The USDJPY moved to new highs earlier in the day and in the process ticked above the 145.90 swing area target. However, dollar by momentum slowed, yields dipped off highs, and it impacted the price of the USDJPY.

The low price in the US session moved back below the 200 and 100-hour moving averages at 145.619 and 145.546. The low price reached 145.42 but could not go any further. Drilling down to the 5 minute chart, the correction off the high retraced to the rising 100 bar moving average (blue line in the chart below) and also near the 38.2% retracement of the trading range today at 145.434. So in the short term intraday sphere, that was a good normal correction.

Now the bias has shifted once again. The combination of holding the 38.2% retracement of the day’s trading range, and getting back above the 100/200 hour moving averages, are more bullish technically.

What next?

Once again getting above 145.90 and staying above is my short-term Step 1. Above that the swing area between 146.299 and 146.40, followed by the extreme high from last week’s trading at 146.1554 (highest level since November 2022) are the next key targets. That would also get the price outside of the “Red Box” (see hourly chart above) that has confined the trading range over the last 9 or so trading days.

What don’t buyers want to see?

Clearly a move back below the 100 and 200-hour moving averages would not be welcomed.

This article was written by Greg Michalowski at Source