The USDJPY momentum to the upside has continued with the pair making a new high in the current hourly bar. The high price has now reached 149.69. Earlier today, the price moved above a topside trend line on the daily chart (see chart below) at 149.29. Recall from yesterday, the price traded up that trendline, only to have sellers lean against it.
The break today has seen increased momentum above the level. That trendline is now a close risk defining level for buyers looking for more upside. It would take a move below to give the sellers some control (with more work). Absent that, and the buyers are firmly in the driver’s seat.
Looking at the hourly chart below, a top-side channel trend line cuts across near 149.91 (and moving higher). On increased momentum, that trendline would be targeted. The level also corresponds roughly with the natural resistance at 150.00. I would expect traders to lean against that area on a test going forward.
For now, buyers are in firm control.
- On the downside, it would take a move below 149.29 to give sellers some confidence.
- On the topside, 149.91 (and the natural resistance at 150.00) are the targets that should attract some decent selling on the 1st teest at least..
This article was written by Greg Michalowski at www.forexlive.com. Source